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May 27, 2024

Aboitiz-led Union Bank to shut down pre-need business

First Union Plans Inc., a wholly owned subsidiary of Union Bank of the Philippines, has sought the approval of the Insurance Commission to withdraw from the preneed business.

In a paid newspaper advertisement printed on March 29, First Union Plans president Romeo Kagalingan said its board of directors has decided to “voluntarily cease and withdraw its pre-need business,” and that the decision of the board was ratified by at least two-thirds of its stockholders.

Kagalingan said First Union has submitted an application to the Insurance Commission for the cessation of sales and cancellation of registration of all its preneed plans.

According to data from the Insurance Commission, First Union did not sell any plans in the fourth quarter of 2022 and that it only has one type of plan.

First Union had total assets of P89.89 million at the end of 2022, while its liabilities amounted to only P26.43 million. Its reserves were at P12.35 million, but it reported a net loss of P8.32 million.