Dividend Philosophy and Investment Strategy

Dividend Philosophy

This is a Participating Insurance Plan. Policyholders can enjoy the potential return through non-guaranteed benefits from the participating fund. While the value of the Plan is mainly affected by the overall performance of the participating insurance business, we will take moderate smoothing measures to meet policyholders’ reasonable expectation on stable return. We will maintain a fair distribution method or sharing ratio and appropriate grouping to ensure policyholders are treated fairly.

The Company will review and determine the dividend at least once a year, the current projection on dividend is not guaranteed and will be influenced by the performance of all relevant policies and factors including but not limited to past experience, future prospect of investment returns, claims and persistency:

  • Claims including the costs of providing death benefit as well as other benefits under the product(s).
  • Investment return including the interest income, dividend income, investment outlook and changes in the asset value.
  • Persistency including policy lapse and partial surrender experience.

For products that are associated with an element of non-guaranteed accumulation interest rate, the company will consider past investment performance as well as future expected return when determining this non-guaranteed interest rate. We may make appropriate adjustment to the level of this non-guaranteed accumulation interest rate were there a change from market. Expectation or customer behavior.

Note: The past performance of dividend or accumulation interest rate is not an indicator of the future performance of the Plan.

 

Investment philosophy and strategy

The Company aims at containing volatility and providing long term stable return as our investment philosophy. Assets are mainly invested in bonds and other fixed income assets, such as government and corporate bonds and other fixed income instruments to support the guaranteed liability payment. To enhance the performance of the investment portfolio, China Life (Overseas) invests in equity-type investments and other investment instruments such as mutual funds and direct/indirect investment in properties or commercial institutions. We may utilise derivatives for risk management purpose.

The investment portfolio will be diversified across different geographic regions and /or industries. Investment strategy will be subject to regular review and changes depending on market conditions and future economic outlook. The Company will inform policyholders relevant changes and the associated policy impact.

China Life (Overseas)’s current investment strategy on this participating and/or providing interest on accumulation plan is as follow:

Asset type Target asset mix (%)
Bonds and other fixed income instruments 30% 至 100%
Equity-type investment and other investments 0% 至 70%

Please refer to China Life (Overseas)’s website https://www.chinalife.com.mo/en/Dividend-Philosophy-and-Investment-Strategy for dividend history, dividend and/or crediting interest philosophy, investment philosophy, policy and strategy, as well as the fulfillment ratio of China Life (Overseas).

Fulfillment Ratios for Dividends and Interests

 

Reporting year: 2020

The following table shows the fulfillment ratio for each of the product series which have new policies issued in the previous 5 calendar years prior to the reporting year 2020. As an overview of the past performance of non-guaranteed benefits declared by the Company, we provide fulfilment ratio on product series issued since 2010 with non-guaranteed annual dividends, terminal dividends and accumulation interests. The information only reflect the Company’s non-guaranteed benefits up to the respective policy anniversary of policies issued and should not be taken as an indicator of future dividends and interests declaration of the products.

Fulfillment ratio calculation for annual dividends

The fulfillment ratio for annual dividends is calculated as the weighted average of aggregate actual accumulated non-guaranteed annual dividends, including actual accumulation interests on dividends and/or cash coupons, against the illustrated amounts at the point of sale for all relevant in force policies in the reporting year.

Fulfillment ratio calculation for terminal dividends

The fulfillment ratio for terminal dividends is calculated as the weighted average of aggregate payout of terminal dividends against the illustrated amounts at the point of sale for all relevant terminated policies in the reporting year. Cash value of terminal bonuses is factored in the calculation.

Fulfillment ratio calculation for accumulation interests

The fulfillment ratio for accumulated interests is calculated as the weighted average of actual interests accumulated on cash coupons against the illustrated amounts at the point of sale for all relevant in force policies in the reporting year.

 

1) Participating Plans - with Annual Dividend

Please select the product series:

 

 

Golden Age Retirement Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.90% 99.93% 99.54% 94.06% 98.28% 99.10% 97.55% 98.42% 97.69%

 

Properous 18 Education Saving Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 100.00% 99.63% 99.77% 96.81% 95.91% 98.52% 97.98% 98.22% 98.80%

 

18-Year Pay Whole Life Insurance

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.77% 99.98% 99.81% 96.70% 97.53% 98.51% 98.06% 98.49% 98.06%

 

6-Year Pay 12-Year Saving Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 100.00% 100.00% 99.49% 100.00% NA 100.00% NA 100.00% 98.91%

 

Time Lady Protection Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 99.53% 100.00% NA 100.00% 100.00% 100.00% 100.00% 99.25% 100.00%

 

Prosperous Life Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA 100.00% NA 100.00% NA 100.00% 98.19% 98.78% 100.00%

 

Peaceful Age Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA 99.86% 100.00% 100.00% 99.62% 99.59% 99.56% 99.68% 99.94%

 

Endowment 65 (Annuity Version)

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.83% 99.92% 99.52% 94.75% 97.46% 97.63% 98.49% 98.12% 98.45%

 

Rainbow Age Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.82% 99.72% 99.66% 99.51% 94.86% 99.73% 97.45% 97.89% 98.28%

 

Long Life and Harvest Year Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA 99.84% NA NA NA NA NA NA

 

5-Year Treasure Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA 99.76% NA NA NA NA NA NA

 

Perfect Wealth Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 100.00% 99.89% NA 100.00% 98.96% 100.00% 95.16% 100.00% 96.60%

 

Wonderful Life Education Savings Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.76% 99.85% 99.62% 97.48% 97.48% 97.97% 98.27% 98.02% 97.07%

 

Supreme Wealth Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.80% 99.72% 99.54% 100.00% 99.14% 96.65% 96.83% 97.94% 99.16%

 

Enjoyable Life Insurance Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA 100.00% NA NA 100.00% 98.04% NA NA

 

Relaxful Age Insurance Plan

Product type - Participating annuity

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 99.79% 99.52% 99.70% 99.42% NA NA 99.55% NA NA

 

Safeguard Tomorrow Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 99.68% 99.87% 99.65% 99.67% 99.56% 99.42% 99.54% 99.94% 99.62%

 

10-Year RMB Savings Insurance Plan

Product type - Participating endowment

Applied to RMB plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA 100% NA NA NA NA 100% NA NA

 

Healthguard Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 99.80% 99.81% 99.73% 99.78% 99.61% 99.73% 99.60% 99.67% 99.50%

 

BOCOM 6 Year Insurance Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA NA 90.04% NA NA NA NA NA

 

Guardian Critical Illness Whole Life Insurance

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA 99.84% 99.58% 99.68% 99.51% 99.63% NA NA NA

 

8-Year Saver Endowment Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA NA NA NA NA NA NA NA

 

Successful Life Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA 99.73% 99.91% 99.92% 99.36% NA NA NA NA NA

 

Noble Life Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100% 99.93% 100% 99.44% 99.32% NA NA NA NA NA

 

Yearly Harvest Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100% 99.91% 99.77% NA NA NA NA NA NA NA

 

Wealth Grower Guaranteed Annuity Plan

Product type - Participating annuity

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 90.44% NA NA NA NA NA NA NA NA

 

Gain Well Insurance Plan

Product type - Participating annuity

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

100.00% 90.44% NA NA NA NA NA NA NA NA

 

 

2) Participating Plans - with Terminal Dividend

Please select the product series:

 

 

Critical Illness Multiple Protector

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA NA NA NA NA NA NA NA

 

Ultimate Fortune Wealth Planner

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA NA NA NA NA NA NA NA

 

 

3) Plans with Accumulated Interest

Please select the product series:

 

 

15-Year Guaranteed Annuity Plan

Product type - annuity

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA 99.32% 93.76% 99.15% 99.42% 96.63% NA NA

 

Critical Illness Guardian Insurance Plan

Product type - annuity

Applied to all currencies plan

Policy year 1

(2019)

Policy year 2

(2018)

Policy year 3

(2017)

Policy year 4

(2016)

Policy year 5

(2015)

Policy year 6

(2014)

Policy year 7

(2013)

Policy year 8

(2012)

Policy year 9

(2011)

Policy year 10

(2010)

NA NA NA NA NA NA NA NA NA NA

 

Note for fulfillment ratios:

  1. The fulfillment ratio is the weighted average ratio calculated for all relevant policies under the respective product series, which may not reflect the circumstances of any individual policy.
  2. If one product has both annual dividend and cash coupon, the fulfillment ratio of annual dividend reflects the annual dividend and accumulation interest on both annual dividend and cash coupon. If one product only has cash coupon, please refer to fulfillment ratio for product series associated with accumulation interest.
  3. If one product has both annual dividend and terminal dividend, the fulfillment ratio is calculated and illustrated separately for annual dividend and terminal dividend.
  4. If one product has both cash coupon and terminal dividend, the fulfilment ratio is calculated and illustrated separately for cash coupon and terminal dividend.
  5. If one product has annual dividend, cash coupon and terminal dividend, the fulfillment ratio of annual dividend reflects the annual dividend and accumulation interest on both annual dividend and cash coupon, and the fulfillment ratio of terminal dividend is calculated and illustrated separately.
  6. Fulfillment ratios may not be applicable due to one or more of the following reason(s):
    i. There is no relevant policy with the respective policy year as of current reporting year.
    ii.The amount of accumulated non-guaranteed annual dividends, terminal dividends and accumulation interests at the point of sale up to the respective policy year as of current reporting year is zero for the relevant policies.
    iii.For terminal dividend, there are relevant inforce policies but no relevant policies has been terminated in the reporting year.

 

 

 

Notes:

1) Some of the above results are shown as "NA" because in the respective year the products were not yet launched.

2) The historical crediting interest rates are based on weighted average crediting interest rate of these policies in each calendar year.