Realization rate of participating insurance products
The following shows the realization rate of each participating insurance product with new policies issued by the Company in the past five years of the 2020 reporting year, to provide an overview of the dividends declared by the Company in the past. These dividend realization rates are for reference only and should not be considered as an indicator of future dividends and special awards declared by participating insurance products. The actual realization rate in the future may be lower or higher than the historical realization rate shown below. If you have an HSBC Insurance policy, you can view your policy value and other policy details on HSBC Personal Internet Banking or the HSBC Mobile Banking app.
What is the realization rate of annual dividends?
The realization rate of annual dividends is designed to show how much the actual accumulated annual dividends and interest amounts (excluding special bonuses, if applicable) of all relevant participating policies in force for the policy year are in line with, lower than or higher than the reference amount at the time of sale. For each relevant product and currency, the calculation method of the annual dividend realization rate for all relevant policies in force in the policy year is the actual accumulated non-guaranteed annual dividend and interest amount, monthly income/annuity (including non-guaranteed interest, if any) ) divided by the ratio of the reference amount of accumulated non-guaranteed annual dividends and interest listed at the time of sale.
Non-guaranteed interest (if any) earned from accumulated dividends and interest and accumulated guaranteed cash and/or annuities (if applicable) is also included in the calculation of the realization rate and is included in the total annual bonus amount.
What is the realization rate of special rewards?
The realization rate of the Special Reward is intended to show to what extent the amount of the Special Reward paid out for all relevant participating policies terminated in the policy year is in line with, lower than, or higher than the reference amount at the time of sale. For each relevant product and currency, for all relevant policies terminated during the policy year, the calculation method of the Special Reward Realization Rate is the sum of the actual Special Reward amount paid out divided by the reference amount of the Special Reward listed at the time of sale. ratio.
How do I make sense of these realization rates?
When the non-guaranteed benefit amount (ie accumulated bonus and interest or special bonus) is the same as the reference non-guaranteed benefit amount provided at the time of sale, the realization rate is 100%. If the realization rate is higher than 100%, it means that the declared non-guaranteed benefit amount is greater than the reference non-guaranteed benefit amount; if the realization rate is lower than 100%, it is the opposite. However, it must be noted that the fulfillment rate can only reflect the declared non-guaranteed benefits of the policies issued during the specified past period, and cannot represent any long-term future declared plans and strategies for the remaining policy years. For example, the interest rate cut environment in 2011 and 2012 and some events such as the market distress induced by the European debt crisis resulted in a lower realization rate of policies issued in 2010 and 2011. Therefore, it is not recommended to consider the realization rate as an indicator of the amount of non-guaranteed benefits declared in the future by participating insurance products.