Dividend Philosophy and Investment Strategy

Dividend and Crediting Interest Philosophy

If it is a participating and/or providing interest on accumulation insurance plan, premiums received from the policies will be invested to a variety of assets according to the Company's investment strategy. The surplus from the invested assets will be shared with policyholder through declared dividends and/or interest rate on accumulation in accordance with the relevant clause in the benefit provision. The Company will ensure a fair sharing of profits among different groups of policyholders and also between policyholders and the Company. The Company will review and determine the dividend and/or interest rate on accumulation at least once a year, the current projection on dividend and/or interest rate on accumulation are not guaranteed and subject to change with the entire performance of the relevant policies and the factor including but not limited to the past experience and future prospect of investment returns, claims and persistency.

The Company has established a Participating Insurance Business Management Committee to conduct regular evaluations on dividend policies and to independently review and determine the profit sharing plan of the current year as recommended by the Appointed Actuary, and has been authorized by the Board (comprising one or more Independent Non-Executive Directors).

 

Investment Philosophy, Policy and Strategy

The Company aims to strive for minimizing volatility of the investment return and provides stable return as our investment philosophy. Assets are mainly invested in bonds and other fixed income instruments, such as government and corporate bonds and other fixed income instruments to support the guaranteed financial obligation. To enhance the performance of the investment portfolio, the Company invests in equity-type investments and other investment instruments such as mutual funds and direct/indirect investment in properties or commercial institutions.

The investment portfolio will be diversified across different geographic regions and/or industries. Investment strategy will be subject to change depending on the market conditions and the economic outlook. The Company will inform Policyholder the relevant changes in dividend and/or interest rate on accumulation and the impact to the policies when there is change in the investment strategy.

Fulfillment Ratios for Dividends and Interests

 

Reporting year: 2019

The following table shows the fulfillment ratios of non-guaranteed annual dividends, terminal dividends and accumulation interests for each of the product series which has new policies issued starting from 2011.

Fulfillment ratio calculation for annual dividends

The fulfillment ratio for annual dividends is calculated as the ratio of aggregate actual accumulated non-guaranteed annual dividends, including actual dividend and coupon accumulation interests, 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 ratio 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 ratio 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.

The information are intended for reference only and should not be taken as an indicator of future dividends and interests declaration of the products. The fulfillment ratio is the average ratios calculated for all relevant policies under the respective product series, which may not reflect the circumstances of any individual policy.

 

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

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

Properous 18 Education Saving Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

18-Year Pay Whole Life Insurance

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

6-Year Pay 12-Year Saving Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Time Lady Protection Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Prosperous Life Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Peaceful Age Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Endowment 65 (Annuity Version)

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

Rainbow Age Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

Long Life and Harvest Year Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

NA NA 100% 100% NA NA NA NA

 

5-Year Treasure Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

NA NA 100% 100% NA NA NA NA

 

Perfect Wealth Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

Wonderful Life Education Savings Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

Supreme Wealth Whole Life Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

Enjoyable Life Insurance Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Relaxful Age Insurance Plan

Product type - Participating annuity

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Safeguard Tomorrow Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

10-Year RMB Savings Insurance Plan

Product type - Participating endowment

適用於人民幣保單

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

NA 100% NA NA NA NA 100% 100%

 

Healthguard Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% 100% 100% 100% 100% 100% 100% 100%

 

BOCOM 6 Year Insurance Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

NA NA 100% 100% 100% NA NA NA

 

Enhanced 5-Year Endowment

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

NA NA NA 100% NA NA NA NA

 

Guardian Critical Illness Whole Life Insurance

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

8-Year Saver Endowment Plan

Product type - Participating endowment

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Noble Life Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Yearly Harvest Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

100% NA NA NA NA NA NA NA

 

Wealth Grower Guaranteed Annuity Plan

Product type - Participating annuity

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

NA NA NA NA NA NA NA NA

 

Critical Illness Guardian Insurance Plan

Product type - Participating whole life

Applied to all currencies plan

Policy year 1

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

(2018)

Policy year 2

(2017)

Policy year 3

(2016)

Policy year 4

(2015)

Policy year 5

(2014)

Policy year 6

(2013)

Policy year 7

(2012)

Policy year 8

(2011)

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

 

Note for fulfillment ratios:

  1. If one product has both annual dividend and cash coupon, the fulfillment ratio of annual dividend reflect 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 of accumulation interest.
  2. If one product has both annual dividend and terminal dividend, the fulfillment ratio of annual dividend and terminal dividend are calculated and illustrated separately.
  3. If one product has both cash coupon and terminal dividend, the fulfillment ratio of cash coupon accumulation interest and terminal dividend are calculated and illustrated separately.
  4. If one product has annual dividend, cash coupon and terminal dividend, the fulfillment ratio of annual dividend reflect the annual dividend and accumulation interest on both annual dividend and cash coupon, the fulfillment ratio of terminal dividend is calculated and illustrated separately.
  5. 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.