OFFICIAL STATEMENT OF PHILIPPINE PRUDENTIAL

Manila, 07 June 2013 -- In response to current customer and public concerns being raised in the media, Philippine Prudential Life Insurance Company, Inc. (Philippine Prudential) is issuing this explanation and clarification. The customers concerned are of Family First Future Provider Planholders of the Pre-Need Company Danvil Plans, Inc., which purchased the Protector Plan (also known by Planholders as PNCB). The PNCB is a very affordable Term Life Insurance protection which came with five riders: Accidental Death Benefit, Permanent Disability Benefit, Hospital Income Benefit, Burial Benefit and No Claim Bonus. The No Claim Bonus Rider entailed no additional cost to the client. Family First Future Provider Planholders who enrolled in the PNCB were covered under a Group Master Policy issued by former Life Insurance Company Berkley International Life Insurance Company, Inc. (Berkley International). In 2007, Philippine Prudential assumed the rights, interest and obligations of Berkley International as the insurer under the same Group Master Policy. The Insurance Commission required the assumption of Berkley Internationals obligations by Philippine Prudential in view of the surrender of Berkley International's license as an insurance company and its exit in doing business in the Philippines. The PNCBs sustainability was due to its maintaining a sufficient number of individuals covered under a Group Life Insurance Coverage. Thus, the Group Master Policy had expressly provided for a minimum participation requirement of all eligible Family First Future Provider Planholders. Group Life Insurance (wholesale life insurance or institutional life insurance) is Term Insurance covering a defined group of people, such as company employees, union or association members and, in this case, the Family First Future Provider Planholders. Individual proof of insurability is not the primary consideration, but more of the size, turnover and financial strength of the group. Over the years, the number of individuals enrolled under the PNCB had dwindled due to various reasons. At present, enrollment under the PNCB is way below the initial coverage and has fallen below the minimum seventy five percent (75%) mandatory participation. This makes it no longer viable for Philippine Prudential to continue with the coverage. Given that the minimum participation requirement was not met, Philippine Prudential has exercised its rights granted under the said Group Master Policy to terminate its coverage with Danvil Plans, Inc., which is the actual Policyholder, effective 25 March 2013. Continuing with this Policy would result to unsound insurance business which the Insurance Commission will not allow. Philippine Prudential had previously assured all concerned Danvil Planholders that their periodic premium payments did not go to waste since they were fully covered under the Protector Plan or PNCB during the entire time it was in force. Since no premiums were collected for the "No Claim Bonus Rider," the Company remains under no obligation to maintain the coverage. However, following a series of consultations and conferences with the Insurance Commission of the Philippines, the Management of Philippine Prudential, as a gesture of goodwill, has offered to refund to the concerned Danvil Planholders a substantial portion of the premiums paid by them. This offer and the specifics of its implementation are currently being evaluated by the Insurance Commission. Meanwhile, concerned customers may call the Philippine Prudential Customer Service Hotline at (02) 902-2300 or via E-Mail at mypolicy@philippineprudential.com for further inquiries.

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