Cocoplans gets P61-M cash infusion for trust fund deficiency

ABS-CBN News

Posted at May 08 2009 01:13 AM | Updated as of May 08 2009 09:13 AM

Cocoplans Inc. assured its planholders that it has enough cash and other assets to meet its obligations, with its parent company Cocolife set to infuse P61 million to cover for its trust fund deficiency.

According to Cocolife President Alfredo Tumacder Jr., the move is a show of continued optimism for the country's pre-need industry despite weak public reception caused by the economic downturn and controversies surrounding the Legacy Group.

"We will be putting in cash to address the capital deficiency of the Cocoplans," he told reporters. The cash infusion is part of Cocoplans' three-year capital and trust fund build-up plan, which was submitted to the Securities and Exchange Commission (SEC).

At present, Cocoplans' trust fund deficiency is at P200 million, but it has a total trust fund of P1.3 billion as of January this year.

"Management of Cocoplans has seen to it that the required funds to comply with the SEC circular will be deposited as a sign of its continuing commitment to its planholders," said Cocoplans President Caesar Michelena.

"We see to it that all benefits are paid on time. In fact, checks are prepared and notices are issued one month in advance to make sure that there are no delays," he added.

With some 50,000 planholders, Cocoplans has the license to sell education, life, and pension plans. Last year, its sales grew 67 percent. With a report from Zen Hernandez, ABS-CBN News