Cuisia: Legacy pre-need problem isolated

ABS-CBN News

Posted at Feb 18 2009 07:43 PM | Updated as of Feb 19 2009 03:43 AM

Philamlife president Jose Cuisia said the financial problems of the Legacy Group's pre-need firms were isolated cases and not reflective of the state of the entire pre-need industry.

"Not all pre-need firms are the same. Philam Plans continues to be stable, continues to meet its obligations to planholders. We don't have trust fund deficiencies, and we don't need to build our capital."

Blaming poor economic conditions, the Legacy Group’s pre-need firms — Legacy Consolidated Plans, Inc., Scholarship Plan Phils, Inc. and All Asia Plans Corp. — closed in January without the approval from the Securities and Exchange Commission.

Cuisia declined to comment on the percentage the Legacy Group pre-need firms share in the entire industry. He said Legacy's pre-need firms' market shares were "small."

He noted that the bigger problem in the industry was not the capitalization of the firms, but the declining confidence of the public.

"Industry sales have declined quite significantly in the last three years, including well-managed firms like Philam Plans because of that loss of confidence. But we continue to sell," he said. - with Michelle Orosa, ABS-CBN News