SUNBIZ

$20.2m Bonus Allocation

Bank South Pacific (BSP) Life yesterday announced the total bonus allocation for 2016, valued at $F20.2 million. About 34,000 policyholders are listed under this bonus allocation. BSP life allocates two
07 Apr 2017 10:43
$20.2m Bonus Allocation
Bank South Pacific (BSP) Life executives from left: General manager distribution and marketing, Michael Nacola, chief financial officer Munendra Naidu, head of operations Atelina Muavono and managing director Malakai Naiyaga during the BSP Life bonus allocation press conference at the BSP Life main office in Suva on Thursday, April 6, 2017. Photo: IVAMERE NATARO

Bank South Pacific (BSP) Life yesterday announced the total bonus allocation for 2016, valued at $F20.2 million.

About 34,000 policyholders are listed under this bonus allocation.

BSP life allocates two bonuses: a reversionary and a terminal bonus.

BSP Life managing director, Malakai Naiyaga, said the reversionary bonus or a bonus awarded during the term of the insurance policy, and guaranteed to be paid at maturity, had been maintained at 2 percent for the majority of policyholders.

He added the terminal bonus or a loyalty bonus awarded to a policyholder for maintaining the policy until maturity had increased from 0.45 percent to 0.55 percent.

The reversionary bonus for 2016 is estimated at $18.2m and terminal bonus is estimated at $2m.

“The reversionary bonus and the terminal bonus allocations have been made possible by pleasing investment performance. Return on our investments was 9.4 percent,” Mr Malakai added.

The reversionary bonus is calculated on a compounding basis, which provides added value to the policy pay-out, when compared with simple bonuses, he said.

“Once reversionary bonuses are declared, they are guaranteed.”

 

What it means to the policyholders:

Majority will collectively accumulate $20.2m on their life insurance policies, adding value to their maturity pay-outs or pay-outs to their beneficiaries in the event of an unexpected premature death of a policyholder.

 

Investment portfolio:

“This bonus is due to the growth and strong performance of BSP Life’s investment portfolio. The returns are shared among policyholders.”

BSP Life’s investment portfolio exceeded $580m since the end of February, and the portfolio is designed to meet short, medium and long term commitments for the policyholders, Mr Naiyaga said.

“Financially, we are very strong. We hold very strong level of reserves well in excess of the statutory requirements for reserving for a life insurance business.”

“Apart from providing bonuses to policyholders, the investment portfolio helps support Fiji’s economy by providing employment which supports livelihoods, paying taxes as well as introducing new initiatives,” he said.

“Our products are not only life insurance products, but have an added advantage of savings to it. I’d also like to encourage those who do not have life insurance, especially young professionals to talk to our life insurance advisors and see how we can provide a tailored solution to support their life goals.”

Edited by: Ivamere Nataro

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