Loyola Plans Consolidated Inc. on Monday offered to liquidate P1.8 billion worth of real estate properties to cover the trust fund’s deficiency and settle the claims of plan holders.
Loyola Plans chairman and president Jesusa Concepcion said in a letter to Insurance Commissioner Emmanuel Dooc the company planned to liquidate non-cash assets amounting to P1.873 billion to fund the P238-million trust fund shortfall.
“Loyola would like to propose for a non-cash contribution against its net worth amounting to P1.87 billion based on the 2014 audited financial statements,” Concepcion said.
Dooc said the fund was more than enough to cover the trust deficiency and pay the 95 plan holders who filed complaints with the IC.
Loyola Plan’s deficiency in its trust fund included P120 million for pension, P66 million for life plans and P50 million for educational plans. The trust fund deficiency prevented the insurers from servicing the claims of plan holders this year.
“This morning, she came with a proposal offering to contribute more than enough real estate assets to the trust fund so that the deficiency will be fully covered. As you know it has a deficiency of P238 million. And Mrs. Jesusa Concepcion proposed a non-cash contribution against its net worth and corporate asset amounting to P1.8 billion, which is more than enough to cover the deficiency,” Dooc said.
“Since these are illiquid assets, some of them will have to be converted into cash by selling them. so to ensure that these assets will come to us this afternoon, they will turn over the original transfer of certificate of title or TCT,” Dooc said.
The IC last week issued a show cause order to Loyola Plans after a number of plan holders complained on social media that the company failed to service their educational claims this year.
Loyola Plans has major investments in real estate, such as memorial parks. It had total assets of P3.75 billion as of end-2015.
Dooc said the TCT of Loyola Plans would be turned over to IC for safekeeping and would be released to the Loyola Plans when the sale was completed.
Another possible arrangement is that the IC would turn them over to the various trustee banks for safe keeping and proper handling, he said. Trustee banks include BDO Unibank Inc., Bank of the Philippine Islands and China Bank.
The insurance body said the 95 complainants could get their claims starting Monday by bringing in the certificate of full payment and two valid identification cards.
“Furthermore, starting tomorrow, the office of the IC will start to pay off the 95 complaints lodged with us. We invited representatives from the Loyola Plans to bring the checks so that they can also witness the settlement of the aforesaid complaints,” Dooc said.
He said aside from the 95 complaints which the IC had already validated, there were 32 additional complaints against Loyola Plans.
“Starting this afternoon, I’m sending a crisis management team to the office of Loyola Plans in Makati because they also committed that they will also start paying off the claims that are submitted in their home office. And my team will be there to observe, witness, assist in the handling of these claims. We’ll be there everyday until the end of this week., or until the situation has normalized,” Dooc said.
