Philam Plans gets SEC okay

The Securities and Exchange Commission has approved Philam Plans Inc.’s registration and licensing of an additional P4-billion worth of pension plans.

In approving the plan, the SEC said the pre-need firm’s trust fund contributions are sufficient to pay all benefits and guarantees described in its plans.

The company has three pension plans to offer to the public, namely the Philam annuity plan, standard pension plan, and comprehensive pension plan.

Despite the sluggish economy and the poor performance of the country’s pre-need industry, Philam Plans managed to record an annual growth rate in gross collections, from P2.74 billion in 2001 to P3.54 billion last year.

Philam Plans is a subsidiary of the Philippine American Life and General Insurance Co. (Philamlife) and the American International Group (AIG).

Based on data released by the prestigious Actuarial Advisers Inc., Philam Plans ended 2002 on top of the country’s 46 pre-need companies. The firm had the highest volume of P8.1 billion, thus allowing it to grab a market share of 21.55 percent.

Philam Plans is looking at a net income of between P400 and P500 million this year.

In terms of the different pre-need product sales, its pensioin plans reached P5.5 billion last year accounting for 24.7 percent of market share.

In the education plans market, it accounted for 17.9 percent making it the second best pre-need company in that market category. – Zinnia Dela Peña