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.

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:

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.

For the historical fulfillment ratios for participating insurance plans of the Company, please click here.

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