Saturday, January 12, 2008 Pre-need firm post 20 percent higher sales
MANILA - Philam Plans Inc. grew its total sales by over 20 percent and increased its market share by three percentage points this year to attain an overall 20 percent market share in the pre-need industry in the first nine months of 2007.
Based on initial figures from the Securities and Exchange Commission (SEC), for the first nine months of 2007, Philam Plans’ total pre-need sales hit over P2.94 billion, representing 20 percent of total industry sales of P14.79 billion.
This reflects over 20 percent of sales growth and a market share growth of three percentage points against the same period in 2006, when the pre-need company posted total pre-need sales of over P2.4 billion, amounting to 17 percent of total industry sales of over P14.3 billion.
The company’s significant growth areas during this period were in both pension and education plans.
The company’s pension plans sales grew by over 22 percent from over P1.8 billion in 2006 to over P2.2 billion in 2007. Its market share in pension plans grew by six percentage points from 20 percent in 2006 to 26 percent in 2007.
The company’s education plans sales grew by over 24 percent from P473 million in 2006 to over P590 million in 2007. Its market share in education plans grew by five percentage points from 15 percent in 2006 to 20 percent in 2007.
Banner year
“We are very happy with these initial results,” said Philam Plans president and chief executive officer Jack I. Howell. “They reinforce our earlier projections that 2007 would be another banner year for Philam Plans, as we strive to achieve our sixth straight year of leadership through our numerous product and service innovations that have begun to change the face of the pre-need.”
Philam Plans, Inc. is a wholly-owned subsidiary of The Philippine American Life and General Insurance Co. (Philamlife), a member of the American International Group Inc. (AIG).
Philam Plans has substantial financial capabilities and holds a huge, fast growing and liquid trust fund, which was P29.1 billion as of December 2006. The majority of the trust fund is secured in cash, cash equivalents as well as liquid assets, such as government securities.
The company’s capitalization stands at P700 million in paid-up capital, which is seven times larger than the minimum SEC requirement.
In a recent statement, the SEC announced that “Philam Plans’ trust fund has sufficient assets that can be liquefied to cover availments as they fall due.” (PR)
