Annual bonus rates hold steady for most par funds despite 2022 losses
Poor equity and bond markets cause double-digit losses for some insurance par funds; terminal bonuses affected
Add BT as a preferred source
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.
TRENDING NOW
Abandoned ‘Titanic’, failing ‘ancient towns’: Why China’s tourism boom leaves white elephants behind
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
‘Very low chance’ that US-Iran deal reverts energy flows to South-east Asia through Hormuz: Bloomberg Economics
Battle for Asia’s ultra-rich: ‘Singapore can’t afford to keep losing clients to Dubai, Hong Kong’
