AIG to divest in Philamlife
By concerned readers | 10/06/2008 2:21 PM
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AIG to divest in Philamlife
Reference to your news article posted in your website dated October 03, 2008 regarding subject, I just want to voice out my concern about the Yuchengco's interest to buy the stake of AIG in Philam Life.
I am one of the policy holders of Philam Life and I am opposed to selling Philam Life to the YGC's because I'm afraid it will be a repeat of what happened to Pacific Plans. Remember it was the YGC who mishandled the funds of Pacific Plans?
And now they want to acquire Philam Life. What is their purpose? If they were not able to handle the funds of Pacific Plans properly, then I guess they don’t have the right to buy Pacific plans.
I DONT TRUST THE YUCHENGCO'S.
They really don’t care about the plan holders like they did the planholders of Pacific Plans.
Frank Gorospe
Philam Life Policy Holder
Dear Feedback,
Philamlife per declared 2007 FS had a value of roughly 108B pesos, which included an investment of 85B or $1.5B.
In this investment Philamlife should be transparent to protect and give peace of mind to the millions of planholders that will eventually be affected when investments go sour.
My concern if the 85B pesos investment is heavily invested in their Foreign partner the AIG? Since AIG lost value from a high $156B to merely $36B (Bloomberg) meaning an almost 77% write off. If Philamlife invested shall we say 90% of their book investment of 86B or 77B then the value of that investment vis a vis with AIG losses will only be 18B or a loss of 59B in market value. Thus, making Philamlife’s total asset to be devalued to only 49B as of today.
Nobody in his right mind will buy out the AIG share in Philam at cost but a discounted value of roughly 70% of its current market value. I feel so sorry for those small planholders/investors with Philamlife. They will suffer the same fate with other Pre need plan holders whose investment go to trash.
With the entry of the Yuchencos, the owner of Pacific plans, they will spin off those particular pre need planholders like what the did with Pacific plans two years back.
The Goverment should arrest these problems before it goes out of hand.
Dante Duco
Doha, Qatar
I am just disgusted and flabbergasted with the news that the Yuchengco's are interested in acquiring a stake in Philamlife.
Do they have a very short and selective memory? Aren't they the principal stakeholders of Pacific Plans, the pre-need company that was not able to fulfill their financial commitment?
Apparently their interest in Philamlife stemmed from the greed to further enrich themselves. Were they able to sleep soundly at the height of the Pacific Plan’s failure? What about the children who were deprived of education and the parents who were tricked into buying plans from their company?
Shame on them!
Josephine Jereza
