November 11, 2016 at 11:45 pm
Gabrielle H. Binaday
The Insurance Commission placed troubled pre-need company Philippine Prudential Life and Insurance Co. under conservatorship and suspended its authority to sell new products.
Insurance Commissioner Emmanuel Dooc issued the advisory on Friday after PPLIC failed to comply the regulatory requirements. The pre-need company is owned by the family of president and chief executive Gregorio Mercado.
Dooc said claimants with issues with the company may file their complaint to PPLIC conservator Moises Balon.
PPLIC has been placed under receivership since 2012.
The IC decided to liquidate PPI after considering the evaluation made by an IC team, the appointed receiver and the actuary assigned to conduct technical analysis on the proposed rehabilitation plan.
Based on the IC-approved liquidation plan, the first tranche of distribution will come from all the liquid trust fund assets that are in the form of cash or easily convertible to cash, such as government bonds, money market instruments and listed shares of stock.
The second tranche comprises of the non-liquid trust fund assets of PPLIC, which will be converted into cash or sold. The residual assets will be distributed last, subject to the court’s order under the liquidation case to be filed by the IC.
Dooc said the IC, along with the IC-appointed liquidator, was implementing the approved liquidation plan and was in the process of converting the non-liquid trust fund assets into cash for distribution to plan holders.
The release of the first tranche for pension, life and education plan holders, funded by the liquid assets belonging to each trust fund, started in August 2013.
The release of the second tranche for education plan holders began in September 2015. It was funded by the proceeds from the sale of a 1,100 square-meter lot in Bonifacio Global City in December 2014.