Loyola short of P238 million in its reserves, down by 37%
Rizal Philippines
April 20, 2016
Of the 11 remaining memorial plan company, one of the biggest, Loyola Memorial Plan which was organized by the late Gil J. Puyat is encountering difficulties. It will be unable to serve 80t+ plan holders to the tune of P238 million. Its trust fund is deficient.
It sold life, pension, and educational plan. What did in the LMP would probably be the educ and pension plans. The low interest rate environment and the deregulated tuition fee environment made the educational plan no longer viable.
Or is it possible that the business model for the memorial plan is not viable ie having only 49% of the funds remitted as trust fund That business itself was legislated to fail under the Pre Need Code of the Philippines.
We are currently still working very hard on the Destiny Financial Plan acquisition. With this LMP problem it is very unlikely that OIC head Emmanuel Dooc will add more challenges.
