Philam Plans sets P9.7-B sales target for 2002

Philam Plans Inc. has set a P9.7-billion target for new businesses this year as it makes a bid to regain the number one position in the pre-need industry.

In 2000, it generated new businesses worth P4.8 billion and industry reports indicate that the 2001 figure could likely be 50 percent better than the previous year based on its track record.

A subsidiary of the Philippine American Life and General Insurance Co. Inc. (Philamlife), Philam Plans ranked second last year behind College Assurance Plans Inc. (CAP Plans). Pre-need products include education, memorial and pension plans.

"We plan to be number one overall again this year," said lawyer Eliseo P. Dizon Jr., Philam Plans president and chief executive officer.

Philam Plans ranked number one in pension plans while it was second best in both the education and memorial plans. In terms of product mix, pension plans accounted for 60 percent of its total businesses, education plans 30 percent, memorial plans 10 percent.

Gross collections are seen to rise to P3.3 billion this year, 54 percent better than last year. The 2002 target is at least 20 percent better than the still being audited 2001 figures.

By April this year, Philam Plans will increase to P5 billion its trust funds or reserves from P4.3 billion at the start of the year. Trust funds are reserves placed in a trustee bank which in turn are invested in various instruments.

In their case, Philam Plans has tapped Deutsche Bank, the Bank of the Philippine Islands (BPI), Equitable PCI Bank, and its sister company, the Philam Savings Bank.

The bulk of its investments are placed in fixed income products like government securities, bonds and Treasury bills while 20 percent go to equities.

It has 25,000 agents, 430 employees, and 70 branches nationwide. Biggest regional centers outside of Metro Manila are Davao, Cagayan de Oro and Cebu.

Aside from all its branches and regional centers, collections and payments can be transacted through its trustee banks (including Security Bank), convenient centers located in strategic areas, and credit cards.

For 2002, Philam Plans will increase its influence and reach through various forms. It will open kiosk and mall sales centers, telemarketing, direct marketing, hiring of brokers and general agencies.

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