Insurance par funds post robust returns in 2024; cautious stance for the longer term

[SINGAPORE] Most traditional with-profits or participating funds managed by life insurers posted strong returns in 2024, thanks to double-digit gains in equities, including Singapore and US stocks.

Insurers’ par funds – which typically comprise whole life and endowment plans – are generally conservatively managed, invested in mostly fixed-income assets which provide greater certainty in the payment of annual bonuses.

In 2024, however, some insurers ratcheted up their equity exposures – to good effect. Prudential, for instance, chalked up the strongest showing of 8.26 per cent for its par fund. Its equity exposure was 35.4 per cent, compared with 29.3 per cent in 2023.