Insurance firm Philippine Prudential Life Insurance Co. Inc. stressed that it is different from and not connected with financially troubled pre-need firm, Prudentialife Plans Inc.
The 46-year old Prudential Life's namesake in the pre-need industry was recently thrown into the limelight after the Securities and Exchange Commission (SEC) revoked Prudentialife's license to sell securities last April 16 for failure to meet the financial requirements.
The name association resulted in many of Prudential Life's 1.3 million insurance clients flooding their office with calls and inquiries about the status of their policies. Prudential Life said they clarified the issue through a letter to their policy holders.
Prudential Life president and chief executive officer George Mercado added that his firm was founded by the late Don Daniel Mercado in 1963 and is regulated by the Insurance Commission. On the other hand, Prudentialife Plans is a pre-need company founded in 1978 by businessman Jose Alberto Alba and is under the supervision of the SEC.
“An all-Filipino life insurance company, it has been serving the life insurance needs of more than 1.3 million policyholders and their families with over P35 billion business in force for 46 years now. We are not connected with Prudentialife in any way,” he stressed.
He also said that the insurance firm has already complied with the P100 million minimum paid-up capital requirement set by the Insurance Commission, and has been issued a Certificate of Authority, which is an assurance that the firm was found by the regulator as qualified to transact insurance business.
Mercado added that the legal policy reserves of Philippine Prudential Life amounted to P228.95 million and has paid claims amounting to P60.66 million as of last year.
“With the required legal policy reserves, insurance companies such as Philippine Prudential Life are solvent to pay claims and are financially stable,” he said.
Insurance Commissioner Eduardo Malinis confirmed that Prudential Life has faithfully complied with the government’s capitalization requirements and the margin of solvency requirements while its assets, investments, and reserves remains intact.