There is no more stopping the final liquidation of failed pre-need insurance company Prudential Plans Inc., better known as Prudentialife, after the Supreme Court of the Philippines denied a petition by the firm and its plan-holders, according to a statement released by the Insurance Commission (IC) Wednesday August 3. It received a copy of the SC decision two days ago, on August 1.
The resolution, dated April 19, states that “The Court resolves to deny the petition for failure of petitioners to sufficiently show that the Court of Appeals committed any reversible error.;" In addition, the SC closed the door on Prudentialife and the plan-holders in trying to apply for any temporary restraining order or writ of preliminary injunction. Copies of the ruling were sent to major newspapers in the country.
At the onset of the decline of the pre-need insurance industry in the Philippines, Prudentialife racked up a P12.3 billion deficit and was unable to pay off its plan-holders. It was placed under receivership by the IC on September 2012, following the failure of all proposed rehabilitation programs. When the receivership itself could not keep the firm solvent, the IC decided that Prudentialife be liquidated. A partway liquidation of the firm’s trust fund in 2013 saw a portion of money given to about 60,000 of the company’s estimated 300,000 planholders.
Prudential Plans Inc. took exception to the IC’s ruling and had it questioned before the Court of Appeals, only to lose the argument in 2014, invalidating the petitioner’s allegations that the pre-need firm was in good enough shape for rehabilitation and that the IC was merely trying to prematurely “kill” the company. Prudentialife then took its petition and that of its plan-holders to the Supreme Court in 2015. Now all is lost.
IC Commissioner Emmanuel Dooc stated in an interview that the SC resolution “has paved the way for the clearer disposition of all remaining Prudentialife assets”, of which only non-cash remain. These include a 1,100-square meter lot in Bonifacio Global City in Taguig, and a company building in Guadalupe.
Dooc also praised the SC’s stance for affirming the executive power of the IC under the Pre- Need Code of the Philippines, which enables it to take control of floundering pre-need insurance firms in the country.
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