AIA Singapore has announced S$494 million (US$377.16 million) in par fund bonuses projected for 2018. Policyholders of some participating policies will have higher annual or terminal bonus / dividend rates, and others will be maintained at the current scale.
More than 70,000 policies will benefit from the bonus scale increase with an average increase of 17%. Some of these policies are expected to have bonus rates that are higher than illustrated at point-of-sale due to favourable performance on these products. The insurer will be writing to inform its par fund policyholders by July 2018.
Mr Patrick Teow, Chief Executive Officer of AIA Singapore, said, “As a company, we are committed to manage the long-term performance of our par fund for our policyholders. And, over the last decade we have consistently delivered one of the strongest returns that outperformed industry averages. We are confident that our par fund is well-placed for sustainable, long-term growth.
The recent launch of AIA Investment Management Private Limited (“AIAIM”), which exclusively provides investment management services to AIA Group’s existing business units including AIA Singapore, reaffirms our commitment to do what’s right to maximise long-term performance of our par fund.”
Bonus and dividend declarations depends on many factors such as past investment return and its future outlook, experience of mortality, morbidity, lapses, surrenders and expenses and other business risks underlying the policies.
There are also many other considerations, such as the smoothing concept where we aim to provide stable returns over the life of the participating policy, and avoid large short term fluctuations in the bonuses declared.
AIA Investment Management Private Limited (“AIAIM”) is located in Singapore and regulated by the Monetary Authority of Singapore, the AIAIM operates as a centre of excellence responsible for supplying Asian regional fund management services to the wider AIA Group and manages a significant amount of assets of the Fund for Singapore.
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