Prudential Life Plans, Inc. PDF

Prudentialife Plans, Inc. Unraveling the Crisis FINFSAF - K33: Joshua Tan & Amanda Urquico Company Products & Services Table of contents Location Value of Company Story Recommendation Sources Company History About Prudential Life Plans, Inc. (PPI) sells pre-need plans Expanded into financial service...

Prudentialife Plans, Inc. Unraveling the Crisis FINFSAF - K33: Joshua Tan & Amanda Urquico Company Products & Services Table of contents Location Value of Company Story Recommendation Sources Company History About Prudential Life Plans, Inc. (PPI) sells pre-need plans Expanded into financial services and real estate Founder: Francisco Alba Incorporators: Francisco Alba & Antonio Gatmaitan 1978 1987 2001 Year founded Year Registered Year Troubled Pre-need Company play a crucial role in helping individuals and families plan for and manage future financial needs, providing peace of mind and financial security during challenging times. Products & Services Life Insurance Educational Insurance Pension Plans Location Currently located in: Basic Petroleum Bldg. Previous address: Prudentialife Building, 118 Gamboa Street, Legaspi Village, Makati City 1229 Metro Manila Current Address: Basic Petroleum Bldg, 104 Don Carlos Palanca, Legazpi Village, Makati, Metro Manila December 2009: Trust Fund Assets = P 9.7 Billion December 2010 Trust Fund Assets = P 8.6 Billion Total Asset = P 10.9 Billion Valuation Source: 2011 Rehab Proposal Total Liabilities = P 20.2 Billion Total Deficiency = P 9.3 Billion September 2011 Trust Fund Assets = P 6.9 Billion Total Asset = P 9.1 Billion Total Liabilities = P 19.6 Billion Total Deficiency = P 10.5 Billion January 2012 Trust Fund Assets = P 6.5 Billion (estimate) Pre-Need Valuation Report As of December 2010 Valuation Type Trust Fund Liability Net Trust Fund/ (Deficiency) Life 2,637,365,952 2,438,311,875 199,054,077 Pension 3,825,202,597 8,321,980,329 (4,946,777,732) Education 2,157,143,710 8,489,941,032 (6,332,797,322) Total 8,619,712,259 19,258,233,236 (10,630,520,977) PrudentialLife Plans, Inc., Asian Financial Crisis (13/200 pre-need firms) Nature of the Education Plans Story Tuition Fee Deregulation 1992 SEC Memorandum No. 04 of 2007 Change in International Accounting Standards (2007) Global Financial Crisis of 2008 Revocation of PPI’s Dealer’s License and Permit to Sell Waning Investor Confidence in the Preneed Industry SEC Pre-Need Code (R.A. 9829) Pre-Need Valuation Report As of December 2010 Valuation Tuition Benefits vs Trust Fund education plans 1,163,194,059 vs 62,439,733 Type Trust Fund Liability Net Trust Fund/ (Deficiency) Life 2,497,365,952 2,328,431,848 169,542,980 Pension 3,092,424,349 8,321,924,509 (5,229,500,160) Education 1,351,068,008 8,045,413,342 (6,694,345,334) Total 6,941,467,185 18,695,769,699 (11,754,302,514) for Story Tuition Benefits vs Trust Fund for education plans 1,163,194,059 vs 62,439,733 PPI collapse dashes dreams of 245,000 policyholders Recommendation/ Rehabilitation Plan 1 Capital Hike/Minimum Capital Requirement 3 Tighter Internal Controls 2 End Open-ended Policies Sources https://www.rappler.com/business/1401-prudentialife-isbankrupt-seeks-rehab https://newsinfo.inquirer.net/489799/only-20-preneed-firmsremain-out-of-200-plus https://business.inquirer.net/143211/in-the-knowprudentialife-plans https://newsinfo.inquirer.net/488207/ppi-collapse-dashesdreams-of-245000-policyholders https://www.yumpu.com/en/document/read/6012584/rehab ilitation-plan-of-prudentialife-plans-inc-insurance-commission Thank you! FINFSAF - K33: Joshua Tan & Amanda Urquico