Insurance Commission warns Provident Plans of possible takeover

The Insurance Commission (IC) on Monday warned pre-need firm Provident Plans International Corp. to improve its financial condition by the middle of June, else face conservatorship.

"(T)his Commission has ordered Provident Plans to submit a concrete plan and letter of intent from its proposed investor or to cover up its capital impairment and trust fund deficiencies within sixty days from receipt of the directive (dated April 12, 2017) or until June 17, 2017," Insurance Commissioner Dennis B. Funa said in an emailed statement.

"Otherwise, this Commission will issue a Cease and Desist Order and place the company under conservatorship," he added.

To recall, Provident Plans in February and March said it has found a possible impairment to cover up its deficiencies — a P316.33-million capital impairment, a P78.54-million liquidity reserve deficiency, and a P78.54-million trust fund deficiency.

The IC said, however, that Provident Plans has not yet submitted any concrete plan or letter of intent from the supposed investor.

According to the IC, it needs to protect the interest of the 38,000 plan holders of Provident Plans, as it cannot continue to operate under its present condition.

Provident Plans currently has three product lines focused on life or memorial plans, education plans, and pension plans. Bulk or 70 percent of its clients are life and memorial policyholders. —ALG, GMA News