Annual bonus rates hold steady for most par funds despite 2022 losses

GRUELLING asset markets in 2022 dragged all insurance participating funds into the red, causing double-digit losses for some.

Still, thanks to a smoothing mechanism, most insurers have chosen to hold steady their annual bonus rates this year. Some have announced a reduction in terminal bonus (TB), the component that accrues at policy maturity.

Last year was widely seen as an aberration in long-term portfolio returns. Sharply rising interest rates and higher inflation caused both equity and fixed-income markets to tank in tandem, robbing investors of the vaunted benefit of diversification.