BSP Life has recorded the highest total estimated bonus allocation of $30 million for the 2019 financial year.
According to a statement from BSP Life customers would be sharing the record-breaking bonus allocation.
Managing director Michael Nacola said they were delighted to announce the reversionary bonus rate for 2019 as 2.5 per cent an increase from the reversionary bonus rate of 2 per cent in 2018.
It was mentioned the terminal bonus rate remained the same as 2018 at 0.85 per cent.
“The total estimated bonus allocation for the 2019 financial year is $30m, the highest ever in BSP Life’s over 140-year history,” he said.
“The bonuses are calculated on the sum insured of life insurance policies, not on premiums paid, which delivers extremely good value.
“In addition, the reversionary bonus, once declared, is guaranteed and is calculated on a compounding basis, adding further value for customers.”
According to Mr Nacola the increased bonus allocation was the culmination of efforts by the entire BSP Life team, past and present. I
t was stated the total declared bonus allocation grew from $16m in 2010 to $30m in 2019 as the total bonuses declared over the past ten years amounted to approximately $196m.
According to Mr Nacola by investing in BSP Life products which had an investment backed benefit, customers became part of Fiji’s second largest institutional investor which was second only to the Fiji National Provident Fund.
In the statement from BSP Life, its investment portfolio had grown from $369m to $765m, which was an increase of $396m in the past 10 years.
This was said to have equated to over 100 per cent growth in 10 years at an average compounded annual growth rate of around 8.44 per cent.
It was further stated back of this strong growth, BSP Life was able to increase the reversionary bonus rate to 2.5 per cent for the 2019 financial year.
The BSP Life investment portfolio was said to be a total of $765m as at December 31, 2019.
As investments were diversified across a number of investment instruments and industries it would ensure the sustainable value for customers.
Mr Nacola said the BSP Life team continued to find new opportunities to provide better experiences and enhanced value for customers.
