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MANILA - The Insurance Commission has recommended placing Prudentialife Philippines Inc. under receivership after rehabilitation proposals submitted to the agency were found to lack merit or couldn't safeguard the interest of plan holders.
In a decision posted on its website, the Commission said it cut short the conservatorship program begun two years earlier. The program was meant to salvage the educational, pension and life benefits of thousands of plan holders.
Commission chief Emmanuel Dooc choose law firm San Diego, Ycasio, Macias, Estorco, Castaneda and Sanchez through lawyer Dionne Sanchez as interim receiver.
Dooc said the various rehabilitation proposals were “not exhaustive enough and failed to guarantee the best value of the benefits that can be given to the plan holders.”
The proposals also “failed to satisfy the requirements of the law,” he said.
Even the Balik-Bayad proposal, which proposed returning to plan holders all their investments in the preneed firm over the past seven years, failed to make the grade, Dooc said.
A separate proposal to manage the remaining life and pension assets also failed to get the nod of the Commission, which found the financial position of PPI "not commensurate to the amount of the trust fund and corporate assets it is proposing to assume."
Loyola Plans' proposal also was rejected, for having been “no different from that of PPI since it will only take over the life plans and only promises 5.5 percent return on the pension and education trust fund.”
PPI's trust fund had been deficient by P500 million, having fallen to P52.3 million last year from P95.8 million the previous year.
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