Unsure of the Insurers; The Declining Pre-need Industry

[jpdm]

go make a ton of money so u don't have to depend on any pre need

But chances are your ton of money have lost its value due to inflation...

So to be more secured...

well, if you have the financial capabilities, you can get as much coverage as you want. but if not, long term payments with long maturity is your choice.

Thus, its still better to have a ton of money so that I get a pre-need...

[True Faith]

...When the government liberalized the local insurance industry, global players started to pour in the country..ING, New York Life and Pru-Life of UK...asan na kaya mga ito?

...It seems the local s still dominate the insurance industry especially pre-need...

[jpdm]

...When the government liberalized the local insurance industry, global players started to pour in the country..ING, New York Life and Pru-Life of UK...asan na kaya mga ito?

...It seems the local s still dominate the insurance industry especially pre-need...

Sunlife, a foreign company is doing well.

New York Life (in the Philippines) I think folded up.

[CVT]

Nagpa-renew pa rin ako ng insurance.... Kailangan pa rin...

6909:seehearspeak:

[True Faith]

The owner of Philam, AIG is still dying.

Philam should be sold to a local insurance giant, ASAP.

[jpdm]

True faith, here is your wish for Philam

Philippine Star


Business

[SIZE=3]SM Group, Generali, Kuok Group join forces to bid for Philamlife[/SIZE]

By Zinnia B. Dela Peña

Thursday, November 13, 2008
The SM Group is teaming up with Generali Pilipinas, the local insurer of Italy’s Assicurazioni Generali, the world’s fourth biggest insurance group, and the Kuok Group of Malaysian to bid for the Philippine assets that the financially-troubled American International Group (AIG) is selling.
Generali Pilipinas is a joint venture between the SM Group and the Generali Group and the Kuok Group.


Jose T. Sio, executive vice-president of SM Investments Corp., said acquiring AIG’s assets would further fortify Generali Pilipinas’ strong position in the insurance industry. The SM group owns 40 percent of Generali Pilipinas.


Generali is the third biggest insurance group in Europe and the 30th largest company in the Fortune Global 500 worldwide ranking with a 2007 total premium income of over 66 billion.


In the Philippines, Generali’s products and services include life insurance, auto and home insurance, small and medium business protection, employee benefit plans as well as commercial property insurance. It has offices in Metro Manila, Bacolod, Baguio, Cebu, Davao and other major cities.
Meanwhile, aside from life insurance in the country, AIG has interest in banking (Philam Savings Bank), mutual funds (Philam Asset Management Inc.), pre-need (Philam Plans) and non-life insurance (Philam Insurance Co. Inc.).


Philam Insurance will not be sold as it will remain under AIG’s umbrella. It provides property and casualty insurance services for individual consumers and businesses including automobile insurance, homeowner’s packages, travel, accident and health insurance, property, third party liability, professional and management liability, marine and more.


The life insurance business in Philamlife is AIG’s crown jewel in the Philippines with a net worth of P21.4 billion as of end-2007. It has been the dominant market player in the Philippines over the last 60 years.
The sale of Philamlife is expected to take place before the end of the year at the earliest with industry observers placing a tag price of between $800 million to $1.5 billion.



Philamlife had a consolidated net worth of P49.5 billion and assets of more than P170 billion as of end-2007.


Aside from the SM Group, other entities that have signified interest to acquire Philamlife include the Ayala Group, Metrobank Group, state pension fund Government Service Insurance System and San Miguel Corp.

[jpdm]

That's my Boy!

Philamlife president and CEO Jose L. Cuisia Jr.

Philippine Star
November 21, 2008

The Philippine American Life and General Insurance Co. (Philamlife), the country’s leading life insurer, said yesterday it remains very profitable and continues to generate significant new business despite a difficult business environment.
Commenting on business conditions this year, Philamlife president and CEO Jose L. Cuisia Jr. said: “These have been very challenging times, but we have worked hard to sustain our ability to remain profitable which demonstrates the company’s resiliency and strength.”

[jpdm]

Tycoons’ banks bid for Philam Savings
By Doris Dumlao

Philippine Daily Inquirer
First Posted 03:39:00 11/21/2008

Four banks controlled by Chinese-Filipino tycoons Henry Sy, John Gokongwei and Andrew Gotianun have submitted a binding offer to acquire American International Group’s Philippine consumer banking arm Philam Savings Bank and auto financing company Primus Finance and Leasing Inc., banking sources of the Philippine Daily Inquirer said.


Banco de Oro Unibank and China Banking Corp., both controlled by the Sy family, separately made a definitive offer as the deadline expired on Monday.
The Gokongwei group’s Robinsons Savings Bank and the Gotianiuns’ East West Bank also submitted binding proposals, the sources said.
“We’re just one of the bidders,” Banco de Oro chairperson Teresita Sy-Coson told the Inquirer. “Now all we have to do is to wait.”
She said Banco de Oro’s interest in Philam Savings was part of its consumer business expansion.


Asked why Banco de Oro and China Bank were running after the same bank, she said: “We work differently.”


Banco de Oro has grown to become the country’s second-biggest bank in assets through acquisitions since 2000.


Two banks that were earlier shortlisted to bid—Asia United Bank and Chinatrust (Philippines) Commercial Bank—have dropped out of the race, banking sources said.
AIG’s consumer units have a combined book value of P1.6 billion—P1.3 billion for Philam Savings and P300 million for Primus Finance. AIG has bundled the sale of these two units, which are expected to fetch a premium over book value.
Philam Savings has a 24.5-percent stake in Primus Finance, formerly the local auto financing company of American car giant Ford, but the buyer must also pay for the remaining stake held by other affiliates.


Philam Savings Bank is 45 percent owned by AIG Consumer Finance Group (CFG) and 45 percent by the country’s biggest and most profitable insurer, Philippine American Life and General Insurance Co., which is itself also being put on sale.


Philam Savings has nine branches and P13.66 billion in total assets, based on its statement of financial condition as of end-June. Its most attractive asset is its growing credit card platform, which has 232,000 cardholders. It also has a high return on equity of 16.94 percent and a capital adequacy ratio of 13.48 percent.


The bank’s net loans and receivables amounted to P10.42 billion while deposits stood at P11.8 billion. It is capitalized at P1.29 billion.

The rich are playing again...

[uls]

well, we can't expect the poor to be bidding for Philam Savings

[True Faith]

well, we can't expect the poor to be bidding for Philam Savings

hmmm..never though of this...very scholarly

[batangmahal]

Iba talaga pag pre-need... a traditional life insurance product makes even more sense than a pre-need plan. Like we have experienced, even high profile pre-need companies cannot deliver on what they promise. Unlike traditional ones na garantisado.

on another note...

New York Life has left the country... PNB Life na ang nag-assume nito, if I am not mistaken.

[batangmahal]

Nagpa-renew pa rin ako ng insurance.... Kailangan pa rin...

6909:seehearspeak:

that's right! well regulated naman kasi ang insurance industry sa Pinas ng Insurance Commission.

[uls]

hmmm..never though of this...very scholarly

very scholarly din naman yung

The rich are playing again...

hehe

[gonzo]

Please enlighten me medyo mahina tayo sa financial analysis ehh, if I have a educ plan that will be in use in 10 years time pa (1st year college anak ko nun) what is my guarantee na my educ plan provider is still around after 10 years?.. its like giving a false sense of security.. remember CAP? is there a government agency that regulate this?.. then why Pacific plans?

I just withdraw the educ plan of my son sa Pacific plan.. it may not be the best decision since I loss some interest and benefit that I will get after 10 year.. wheww... but I lost trust sa educational plan ....especially eto nanaman ngayon may crises nanaman.. I may loss some money but I still get my principal than having false sense of security at the end of the day wala pala akong ma aasahan.. and who Im going to blame?...Gobyerno by not protecting me?.. wala namng ganun diba?... my brother in law may 3 children puro naka CAP naawa ako sa mga anak kasi di lahat naka pag aral... Please enlighten me if I am wrong in withdrawing my sons educ plan... thanks

[dx8976]

it can be mildly compared to loaning the pre need company money for them to use in any way they wish without any collateral or guarantee of payment in return for a higher than ordinary bank savings interest rate (if they are able to pay).

if they can get the kinds of returns that will enable them to pay you back at such a rate after paying their sales people commissions, and their operational costs, why can't you do it yourself (especially since you're not giving out any commissions to salespeople and having to maintain offices etc)

best thing is if you can find out how they will generate the income necessary to pay you back, and then find you can decide if it is worthwhile.

otherwise i believe "go make a ton of money so u don't have to depend on any pre need" is the best thing

[batangmahal]

Please enlighten me medyo mahina tayo sa financial analysis ehh, if I have a educ plan that will be in use in 10 years time pa (1st year college anak ko nun) what is my guarantee na my educ plan provider is still around after 10 years?.. its like giving a false sense of security.. remember CAP? is there a government agency that regulate this?.. then why Pacific plans?

I just withdraw the educ plan of my son sa Pacific plan.. it may not be the best decision since I loss some interest and benefit that I will get after 10 year.. wheww... but I lost trust sa educational plan ....especially eto nanaman ngayon may crises nanaman.. I may loss some money but I still get my principal than having false sense of security at the end of the day wala pala akong ma aasahan.. and who Im going to blame?...Gobyerno by not protecting me?.. wala namng ganun diba?... my brother in law may 3 children puro naka CAP naawa ako sa mga anak kasi di lahat naka pag aral... Please enlighten me if I am wrong in withdrawing my sons educ plan... thanks

since your provider is Pacific Plan, it goes on to say that the government agency regulating this pre-need industry is the Securities and Exchange Commission (SEC). unlike the other insurance companies (traditional) which is not only regulated by SEC but also by the Insurance Commission (IC), which has a rather strict form of regulation. IC therefore assures that the money you put in a life insurance company will always be there if and when you need it.

of course, withdrawing your money at an early stage will give you some loss, given that the maturity period is still not reached.

[pup2]

otherwise i believe "go make a ton of money so u don't have to depend on any pre need" is the best thing

hehehe. Siyempre ito ang the best.

Puwede din just have really smart/talented/maabilidad kids who can get a scholarship.

[gonzo]

hehehe. Siyempre ito ang the best.

Puwede din just have really smart/talented/maabilidad kids who can get a scholarship.

Correct or give him talents that can make him scholar in college..

sometimes the rate of return is too good then you will doubt how they can manage those fund that can generate that much return and deliver to the plan holder at maturity. ehhh kung di nag success ang mga investment nila? todas eduKaSyon ng anak mo!

This is just my opinion, and based on the sad experience with these pre need companies

[[archie]]

Please enlighten me medyo mahina tayo sa financial analysis ehh, if I have a educ plan that will be in use in 10 years time pa (1st year college anak ko nun) what is my guarantee na my educ plan provider is still around after 10 years?.. its like giving a false sense of security.. remember CAP? is there a government agency that regulate this?.. then why Pacific plans?

I just withdraw the educ plan of my son sa Pacific plan.. it may not be the best decision since I loss some interest and benefit that I will get after 10 year.. wheww... but I lost trust sa educational plan ....especially eto nanaman ngayon may crises nanaman.. I may loss some money but I still get my principal than having false sense of security at the end of the day wala pala akong ma aasahan.. and who Im going to blame?...Gobyerno by not protecting me?.. wala namng ganun diba?... my brother in law may 3 children puro naka CAP naawa ako sa mga anak kasi di lahat naka pag aral... Please enlighten me if I am wrong in withdrawing my sons educ plan... thanks

ang masama po sa CAP dati si hindi maganda on how the plans work. traditionally, the companies payout the tuition fees of the beneficiaries and the yearly payments are minimal kaya dami kumuha. ang liit dati ng payments ng CAP for a big time promise but companies like sun life, lump some amount yung bibigay sayo with the interest attached. minsan may mga graduation gift pa. hehe

for me, sayang kung pull out sa pre-need educational plans kasi may penalties involved or less makukuha mo and the company earns more kasi wala na obligations and nainvest na portion ng premium na binayad and earned interest from that premium payments.

my 2 cents.

[jpdm]

...... but companies like sun life, lump some amount yung bibigay sayo with the interest attached. minsan may mga graduation gift pa....

for me, sayang kung pull out sa pre-need educational plans kasi may penalties involved or less makukuha mo and the company earns more kasi wala na obligations and nainvest na portion ng premium na binayad and earned interest from that premium payments.

my 2 cents.

Speaking of Sunlife, here is a news article...

Manila Times
November 29, 2008

Sunlife Sales Surge Amid Financial Crisis

[SIZE=2]AMID the global financial turmoil, Sun Life Financial Philippines said sales of traditional life insurance and regular-pay Variable Universal Life (VUL) products surged in the third quarter of the year.

[/SIZE] [SIZE=2]In a statement, Henry Joseph Herrera, Sun Life president and chief executive, said the company registered a 138-percent growth in the sales of traditional life insurance and a 24- percent increase in VUL products from the same period last year.
[/SIZE]
[SIZE=2]
[/SIZE]
[SIZE=2]As the sales of traditional life insurance and VUL products enjoyed growth, single-pay unit linked products, meanwhile, dropped significantly by 92 percent in the third quarter of the year.[/SIZE]
[SIZE=2]
[/SIZE]
[SIZE=2]“We are closely monitoring the local market situation and we remain interested in any new alliances that could deliver additional value to our shareholders,” Herrera said.[/SIZE]
[SIZE=2]
[/SIZE]
[SIZE=2]Last year, the company’s sales shot up by 61 percent to P26.1 billion year-on-year, the highest level recorded, from its life insurance, pre-need and mutual funds businesses.
[/SIZE]
[SIZE=2]
[/SIZE]
[SIZE=2]Total premium for its life insurance business grew by 48 percent to P13.1 billion.[/SIZE]
[SIZE=2]
[/SIZE]
[SIZE=2]Gross sales of mutual funds surged by 92 percent to P11.2 billion year-on-year due to its increasing popularity among Filipinos as an investment vehicle.[/SIZE]
[SIZE=2]
[/SIZE]
[SIZE=2]The company’s pre-need installments grew by 14 percent to P1.8 billion. [/SIZE]
[SIZE=2]Sun Life has been in the Philippines since 1895 and is a member of the Sun Life Financial group of companies and international financial services organization that provide wealth accumulation and protection products and services to individual and corporate customers.
--Chino S. Leyco[/SIZE]