Data from the Securities and Exchange Commission showed total sales for the first 11 months of 2006 amounted to P17.57 billion, compared with P18.91 billion a year earlier.
The number of plans sold likewise decreased 23.35 percent to 217,930 from 284,307.
Education plans suffered the biggest drop in sales as the number of plans sold dipped 34.31 percent to 30,956 valued at P3.8 billion or 30.44 percent lower than the previous level’s P5.47 billion.
Sales of life plans also declined 32 percent to 72,525 from 106,621 the previous level. In terms of the contract value, sales of life plans amounted to P2.6 billion, down 26.42 percent from P3.53 billion.
The number of pension plans sold likewise went down 12.34 percent to 114,449 from 130,560. In terms of the contract value, sales of pension plans, however, increased 12.7 percent to P11.16 billion from P9.91 billion.
Initial collections from the plans sold amounted to P2.21 billion, 8.78 percent higher than the year-ago figure of P2.03 billion.
Pre-need plans are contracts which provide for the performance of future services or the payment of future monetary considerations at the time of actual need for which planholders pay in cash or installment at stated prices, with or without interest or insurance coverage and includes life, pension, education, and interment.
The industry expected a flat growth in 2006 due to difficulties in the business environment especially with the adoption of new International Accounting Standards (IAS).
The IAS will increase the liabilities of companies since premiums collected will no longer be booked as income but as a liability. This, however, could make healthy companies with good cash positions look bankrupt.