Prudentialife:
Pag-Asa Tungo sa Magandang Umaga
At
28, We Move On; Giving Hope, Fulfilling Dreams
 In
2002, we faced a major challenge. How to attain market
leadership in an industry hit by negative publicity
and stricter government regulation? A study prepared
by US aided AGILE showed a problematic industry. While
still a draft report, media leaked the report causing
the public to panic. Reacting to this, the regulators
implemented stricter rules and regulations to protect
the industry and the buying public.
The situation required us to change and adapt to the
new rules and regulations. Major restructuring was made
which included the elimination of one level in the marketing
organization, reduction in incentives, and a price increase
among others. Our communication campaign focused on
our company’s stability and trustworthiness. Our
“Seven Great Reasons to Trust Prudentialife”
was circulated and memorized by heart by everyone.
Faced with these challenges, Prudentialife took over
the leadership position in 2003. From the 4th position
in 2001, we inched our way up to the No. 1 position
in 2003 with a market share of 29%! This feat was even
made more memorable since it coincided with our 25th
year.
Growth and Vision
In 2004, Prudentialife continued to grow
with sales volume increasing by 46%! With prudent fiscal
management, our trust fund reached over P12.5 billion
on the same year reassuring our commitment to fulfill
the dreams of our planholders and loved ones.
But the industry continued to be hounded by negative
news. The collapse of a major pre-need firm ended in
the front pages of all major dailies. Rumors circulated
about other pre-need firms about to fold up.
Because of public pressure, regulators again adopted
stricter rules and regulations. Circulars 6,7, and 8,
which were implemented without industry consultation,
came out with guidelines for computation of the Actuarial
Reserve Liability (ARL). With this circular, our ARL
suddenly increased eroding all our profits.
With the changing environment, I realized that the strategies
we have adopted might have to be adjusted. In my speech
during the Prudentialakbay in Baguio, I mentioned that
to continue to grow, we must keep an open mind, watch
for the trends and opportunities, and create our future.
Dealing with Distress
In 2005, the industry continued to suffer
from the erosion of public confidence as a major pre-need
company went to court and filed for rehabilitation.
Two other companies followed suit and also went to court
and filed for rehabilitation in the same year. Consequently,
confidence in our industry continued to be eroded with
sales dropping by 45% in 2005.
On our part, it has become clear that the ARL and the
new International Accounting Standard (IAS) would adversely
affect our financial standing. Nevertheless, we have
remained steadfast. As I have mentioned in my road shows,
we just have to do our best and prepare for the worst!
Fresh Approach Towards Hope
To date, there is still a sense of hopelessness
in the pre-need industry. As we enter our 28th year,
there must be a better way to provide hope and optimism.
Rather than being rendered immobile, we have to move
forward for the sake of our company and the families
and the clients that we serve. Thus, we are inspired
by the rallying cry: “RE-CREATE @ 28” and
the slogan “RECOLLECTING PAST, REFRESHING FUTURE.”
This aptly describes the corporate actions we must take
starting fiscal year 2006.
We believe that a sound approach to growth is the best
insurance for the future. While our pre-need core business
is being plagued by the industry crisis, we are focusing
on a growth path that considers new products, branch
and organizational restructuring, strategic partnerships,
and real estate investments.
In pursuing our growth objectives, our prudent move
to restructure the organization will ensure our capability
to meet our obligations to our planholders. As we foresee
a natural contraction of the pre-need industry, we are
confident that the Prudentialife Group can continue
to grow as we draw a strategic roadmap to prepare our
company for a stronger and more stable future.
Integrated Product Extensions
On pre-need, we will focus on the Life
Plan as lead product to complement the memorialization
business group composed of mortuaries / chapels, memorial
parks, crematoriums, and related services. On investments,
the Optima Funds will launch more funds to provide a
wider range of fund types to suit the investment goals
of prospective investors. Prudentialife’s other
financial services such as Visa Card, lending, securities
and insurance brokerage will continue to grow under
our synergy program.
On its first year, our health plans have become a timely
opportunity for our sales associates to offer to their
planholders and prospective corporate accounts. Product
training and hospital accreditation efforts in the different
branches nationwide are underway. We are confident that
starting fiscal year 2006, PrudentialifeCare will be
a top-of-mind brand in the healthcare industry.
In our Prudentialakbay 2006 at Boracay, our delegates
will have a chance to visit Boracay Nuevo. Owned by
Akean Resorts Corporation, it is envisioned to be the
flagship tourism/realty project of the Prudentialife
Group.
Strategic Partnerships
At this stage, we are open to strategic
alliances with business partners who share our common
goal of providing services to uplift the lives of Filipino
families. We have just incorporated Prudentialife Property
Consultants, Inc. and have forged an alliance with Globe
Asiatique Realty Holding Corporation and Caleum Developers,
Inc. for joint marketing efforts of our products.
Sound Investments
To reassure our valued planholders and
future clients, sound investments in real estate properties
are part of our expansion plans. In March, we inaugurated
another company-owned building in Baguio City to house
our regional office covering Pangasinan to the Ilocos
region. Within the year, we will inaugurate the 7-storey
Prudentialife building in the center of Guadalupe, Mandaluyong
City to better serve our customers. Construction of
our Cebu Office in Ayala District will also commence
this year.
Building On Our Strength
Amid all the trials and difficulties,
I have chosen to recollect the past briefly and showed
the prospects, growth opportunities, and the value of
our strengths as one family. Whatever changes we are
implementing within the group have instilled in us an
acceptance of the realities of business, discipline,
and the vision to see the growth opportunities awaiting
us. The challenge now is to “RE-CREATE @ 28”
and continue to build what is already with us. With
God’s help, we will face a brighter tomorrow.
Salubungin natin ang magandang umaga!
Sa Prudentialife, Buhay ang Pag-asa!
JOSE ALBERTO T. ALBA
President
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