Pre-need sales drop 11.6% in 4 mos

The country’s pre-need industry reported an 11.6 percent decline in sales during the first four months of the year as investors continued to wait for business conditions to stabilize and for the outcome of the national elections.

The number of pre-need plans sold during the period from January to April 2004 fell to 159,669 from 180,621 in the same period last year.

The value of these plans, however, rose 7.3 percent to P11.36 billion from only P10.59 billion the previous level.

Pension plans accounted for bulk of total sales with a total of 86,202 units, representing a 3.12 percent drop from the year ago’s 88,975 units. The value of these plans, however, grew 20.81 percent to P6.26 billion from P5.18 billion a year ago.

The number of education plans sold slid by 21.33 percent to 43,829 from 55,710. The value of their sales likewise decreased to P4.17 billion from P4.52 billion.

The number of life plans sold likewise decreased to 29,638 or 17.53 percent lower than the previous year’s 35,936. The value of these sales, however, went up 4.63 percent to P934.51 million from P893.14 million.

The College Assurance Plans Phils. Inc. emerged as the number one seller of education plans for the period under review. The company sold a total of 11,180 education plans valued at P865.31 million. On second spot was Philam Plans Inc. with a total of 6,629 education plans sold valued at P884.03 million.

Among issuers of life plans, St. Peter Life Plans Inc. led the pack with 8,119 units sold valued at P141.13 million followed by Prudentialife Plans Inc. with sales of P293.1 million or a total of 5,916 units.

Comprehensive Annuity Plans & Pension Corp., on the other hand, dominated the sales for pension plans, contributing P591.88 million for a total value of 11,344 units. Platinum Plans came in next with a total of 10,788 units sold valued at P285.25 million.

The industry pre-need caters to clients who resort to pre-need plans as saving mechanisms to answer future needs of either themselves or their beneficiaries. The plans provide for the educational costs of their children; their pension upon retirement; and memorial service upon their demise.