Loyola Plans submits bid to take over Prudential Plans' pre-need business
MANILA, Philippines - Loyola Plans Consolidated Inc. has submitted a bid to take over the pre-need business of Prudential Plans Inc.
The formal bid will be turned over to Rosario S. Bernaldo, the appointed conservator tasked by the Insurance Commission (IC) to rehabilitate the distressed pre-need company.
According to the IC, Loyola offered two options in its proposal. The first involves the takeover of only the live memorial and pension plans. The second option is to acquire all three portfolios – memorial, pension and education.
IC Commissioner Emmanuel L. Dooc said they intend to resolve the issue within the third quarter of the year.
“We want to resolve this as soon as possible. We gave all the interested parties up to this week to submit their formal proposals,” he said.
Meanwhile, Prudential Plans chief executive officer Albert Alba said that they continue to service matured plans prior to the Feb. 6 stay order issued by the IC to ensure that the trust funds would not be depleted.
“We continue to service the trapped but matured plans after we were allowed by the IC,” Alba said.
Asked about the reported bids for the troubled pre-need company, Alba admitted that he was informed of the reported proposals. However, he was not aware of the details of the proposals as these would only be revealed by the conservator.
“Naturally, it would be better if whoever is interested in our plans, acquire all rather than take one or two categories,” he added.
Loyola Plans is considered among the more recognizable pre-need companies having been among the first to offer memorial plans. It has 300 certified servicing mortuaries and six memorial chapels.
Prudential Plans is servicing over 300,000 planholders in the education, memorial and pension categories. But it incurred a deficit of some P11 billion in its trust funds, forcing the IC to stop its operations early this year.