27 Mar 2007
Prudential Singapore distributes one-off special bonus to policyholders
Prudential Assurance Company Singapore (Pte) Ltd (Prudential Singapore) announced today that it is distributing a special bonus worth S$250 million to its policyholders who own regular premium participating policies. The company is declaring the special bonus as a result of the good investment performance in 2006. Prudential’s participating fund earned an investment return of over 13% last year. This is significantly higher than the projected return of 5.25% per annum currently used in benefit illustrations.
This is the first time Prudential Singapore is giving a special bonus. The one-off exercise is on top of the annual reversionary bonuses declared on participating insurance policies. The S$250 million will be shared by more than 300,000 policyholders.
Based on sample policies, the average increase in projected maturity value is S$1,500 (for Whole Life policies the value would be the surrender value at age 65). The actual increases in maturity values and yields to maturity will depend on the policy type, the policy term, the policy size and the year of commencement.
Said Philip Seah, Chief Executive Officer of Prudential Singapore, "We are always trying to deliver good value to our customers. In recent years, we were not able to increase bonus rates because of the poorly-performing markets, but we are very pleased that the strong investment performance last year has allowed us to reward our policyholders with this special bonus."
Reversionary bonus is an annual bonus that increases the guaranteed benefits of the policy. Once added, a reversionary bonus cannot be reduced or removed. Regular premium participating policies are also entitled to Performance bonuses which are paid on the surrender, death or disability of the life assured or on the maturity of the policy, whichever is earliest. Maturity bonus is an additional amount that we pay when the policy matures.
Single Premium Participating Policies enjoy Income and Growth bonuses and the rates for these will remain unchanged for this year. Income bonus is a monthly amount that increases the guaranteed benefits of the policy. Growth bonus is an additional amount that is paid on the maturity of the policy or on the death of the life assured.
About Prudential Assurance Singapore Company (Pte) Ltd
Prudential Singapore is one of the market leaders in the life insurance industry in Singapore and is a wholly owned subsidiary of UK-based Prudential plc. Prudential Singapore is the first life insurer in Singapore to be named Asia's Life Insurance Company of the Year. It is also a National Productivity Award winner as well as a Singapore Quality Class company.
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For media enquiries, please contact:
Noreen Wee
Manager
Customer Management & Corporate Communications
Tel : 6539 5913
Noreen.Wee@prudential.com.sg
Felicia Leung
Director
Customer Management & Corporate Communications
Tel: 6539 5907
Felicia.Leung@prudential.com.sg