Sun Life joins top 3 pre-need firms in RP

Canada’s Sun Life Financial Plans has joined the topthree players in the country’s pre-need industry with P1.92 billion from a total of 11,981 plans sold in 2005.

Data from the Securities and Exchange Commission (SEC) show that Sun Life emerged the leader last November and December both in terms of initial cash brought in (ICBI) and gross contract price (GCP), the two most relevant benchmark sales indicators for pre-need companies.

In both measures, Sun Life performance figures showed significant expansion from month-ago numbers.

In December alone, Sun Life cornered a market share of 53.1 percent in terms of ICBI and 31.6 percent in GCP.

For the whole of 2005, Philam Plans remains the top pre-need player with P4.6 billion in sales from 39,857 plans sold. This was followed by Prudentialife Plans with sales reaching P3.7 billion from 43,020 plans sold.

Philam Plans registered a market share of 22.56 percent while Prudential cornered 18.33 percent. Sun Life settled for 9.37 percent market share while another Canadian insurer Manulife Financial Plans Inc. accounted for 6.99 percent.

The pre-need industry continued to languish amid persisting confidence and perception problems brought about by the financial woes of some major industry players and declined by 14.47 percent in terms of GCP.

"Sun Life on the other hand scored a 498 percent increase in the same benchmark in the comparative periods. In terms of ICBI, the industry did a little better, growing by 17.88 percent in December 2005 vis-a-vis its collections figure a year ago.

Comparing its ICBI levels for the same periods, Sun Life leapt by 1,170 percent," Sun Life president and chief executive officer Lorenzo Tan said.

Tan added that the financial services company’s robust last quarter performance is only the start of a greater market offensive in the months ahead.

Sun Life Plans is a subsidiary of Sun Life Financial Philippines which is also a dominant player in the life insurance and mutual fund industry.