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Dividend/Bonus Philosophy

Participating insurance plans are designed to be held long term. Through the policy dividends/bonuses declaration, the policyowners can share the divisible surplus (if any) of the participating insurance plans. We aim to ensure a fair sharing of profits between policyowners and shareholders, and among different groups of policyowners.

We will review and determine the amounts of dividends/bonuses at least once per year, and a smoothing process is applied when the actual dividends/bonuses are determined. The dividends/bonuses declared may be higher or lower than those illustrated in any product information provided. The dividend/bonus review would be approved by the Chairman of the Board, one Independent Non-Executive Director and the Appointed Actuary of the Company. In case of any change in the actual dividends/bonuses against the illustration or should there be a change in the projected future dividends/bonuses, such change will be reflected in the policy annual statement and benefit illustration.

To determine the policy dividends/bonuses, we may consider the past experience and future outlook of various factors such as:

  • Investment returns: include both interest income and change in market value of the assets supporting the policies. The investment returns could also be subject to market risks such as change in interest rate, credit quality and default, equity price movement, as well as currency price of the backing assets against your policy currency etc.
  • Claims: include the cost of providing death benefit and other insured benefits under the policies.
  • Surrenders: include policy surrenders and withdrawals; and the corresponding impact on investment.
  • Expenses: include both direct expenses which are directly related to the policies, such as commission, underwriting, issuance and premium collection expense etc, as well as indirect expenses such as general overhead costs allocated to the policies.

Investment Philosophy, Policy and Strategy

The investment policy of the Company is formulated with the objective to achieve targeted long-term investment results, taking into account risk control and diversification, liquidity and relationship between assets/liabilities.

Our current long-term target asset mix attributed to the product groups is as follows:

Product

Chubb Life Yearly Income Plan

Chubb Gold Fortune Deferred Annuity Plan

Chubb MyLegacy Insurance Plan

Chubb Platinum Plus Insurance Plan®

EasyRetire Annuity Plan and Chubb FlexiLiving Deferred Annuity Plan

Embrace Care Critical Illness Plan

Flexi Savings and Custom Whole Life

Gold Wealth Insurance Plan

Other Participating Insurance Plans

Asset Class Target Asset Mix (%)

Bonds and other fixed income instruments

60% - 80% 85% - 95% 30%-50% 30% - 50% 85% - 95% 40% - 60% 75% - 85% 40% - 60% 90% - 100%
Equity-like assets 20% - 40% 5% - 15% 50% - 70%

50% - 70%

5% - 15% 40% - 60% 15% - 25% 40% - 60% 0% - 10%


The bonds and other fixed income instruments predominantly include government and corporate bonds (both investment grade and non-investment grade). Equity-like assets may include both listed equity, mutual fund and private equity. Investment assets are predominantly denominated in U.S. dollars and Hong Kong dollars, and are mainly invested in the United States and Asia. Derivatives may be used to manage our investment risk exposures.

We will pool the investment from other products together for actual investment and the returns will be allocated with reference to the target asset mix. Actual investments would depend on market opportunities at the time of purchase. Therefore, the actual asset mix may differ from the target.

The investment strategy may be subject to change depending on a number of factors, including but not limited to the market conditions and economic outlook.

For products that offer annuity option, the investment strategy supporting the annuity payment may not be the same as that of the basic plan.

If there are any material changes in the investment strategy, we will inform our policyowners for the changes, reasons for the changes and the impact to the policyowners.

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Historical Fulfillment Ratios for Participating Insurance Plans


Date: 31 March 2024

The following table shows, for the reporting year 2023, the historical fulfillment ratios of accumulated dividends and interest, reversionary bonuses and terminal dividends / bonuses for the participating insurance plans issued by the Company since 2010 and they still have policies inforce in the reporting year 2023. The information is intended for reference only. The accumulated dividends and interest, reversionary bonuses and terminal dividends / bonuses are not guaranteed and vary by products. Historical fulfillment ratios should not be taken as indicator of future performance of the Company’s participating insurance plans. The future fulfillment ratios may be lower or higher than the historical ratios as listed.

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Maturity dividend is included for Value Savings
Remarks:
  1. The fulfillment ratios for accumulated dividends and interest are based on the policies which are issued by the Company since 2010 and still inforce in the reporting year 2023, and calculated by the ratio of actual accumulated dividends and interest (on annual dividends and other incomes) at the respective policy anniversary in year 2023 against the respective amounts illustrated at the point of sale.
  2. The fulfillment ratios for reversionary bonuses are based on the policies which are issued by the Company since 2010 and either still inforce or terminated in the reporting year 2023, and calculated by the ratio of actual cash value of accumulated reversionary bonuses at the respective policy anniversary in year 2023 against the respective amounts illustrated at the point of sale.
  3. The fulfillment ratios for terminal dividends / bonuses are based on the policies which are issued by the Company since 2010 and terminated in the reporting year 2023, and calculated by the ratio of actual payout amount of terminal dividends / bonuses against the respective amounts illustrated at the point of sale.
  4. Policies that had been converted to extended term insurance are excluded from the calculation of fulfillment ratios.
  5. For the purpose of calculation of fulfillment ratios, it is assumed that:
    • All annual dividends (if any) declared are left with the Company for interest accumulation since policy issuance
    • All guaranteed cash coupons (if any) paid are left with the Company for interest accumulation since policy issuance
    • All guaranteed monthly annuity payments (if any) and non-guaranteed monthly annuity payments (if any) paid are left with the Company for interest accumulation since policy issuance
    • For all relevant policies, the Sum Assured / Notional Amount at issuance is the same as the Sum Assured / Notional Amount as at December 31, 2023 and there is no change in the Sum Assured / Notional Amount since policy issuance.
  6. Fulfillment ratios may not be applicable due to one or more of the following reason(s):
    • No relevant policy is inforce within the reporting year 2023
    • The amount of accumulated annual dividends and interest or reversionary bonuses illustrated at the point of sale up to the respective policy year as at current reporting year is zero for the relevant policies
    • No terminal dividends/bonuses was paid in the reporting year as 1) no terminal dividends / bonuses was entitled by the relevant policy upon the termination of the policy in the respective policy year; and / or 2) no relevant policy was terminated in the respective policy year.

The “Company”, “we”, or “our” herein refers to Chubb Life Insurance Hong Kong Limited, which is authorized by the Insurance Authority to carry on long-term insurance business in the Hong Kong Special Administrative Region.