Challenging to sell paper dreams, plans
We were surprised that the a media outlet reported that pre need company associated with us regarding the legal move by a regulator to conserve the said company allegedly on mounting claims
It is untrue. The said pre need company was never allowed to start operations right at the start due to alleged capital deficiency when we bought it We bought it from a famous banker and former govt official and he said the claim of the said regulator is incorrect And we had no customers yet because it was not given a chance to operate. Nothing was done by the seller to correct this or rectify this with the regulators
The publication was without basis and untrue. It could be defamatory They should have checked their facts
We were happy because under the current regulations a pre need company could not survive. From a high of 200, how many remain? Under the current rules of accounting: most pre need companies with GS assets at 3-4% are at loss vs the BSP rate of 5.75 or 6% before. Cost of services now could not match the past selling prices of plans, and most customers would be unhappy. Panay ROP. More power regulators and irresponsible media. Really most pre need company under the laws would turn belly up. It simply tells us that memorial plans are no longer viable business...
You can sell only pre need if you have existing facilties and you can control the cost. Its hard selling paper only. Dreams and plans... Reality bites
We are happy and content selling tangible assets and services and focusing on memorial assets. May be that is our destiny and not destiny memorial plans
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