Participating Fund Update – Annual Bonus Declaration for 2017

Placing people over policies – we provide stable returns for you

At Etiqa, we are committed to managing our policyholders’ investments prudently over the long-term. We strive to maximise returns on the participating fund’s investments to ensure stable benefits for our customers, while maintaining the security of the fund.

Why should I choose Etiqa to be my participating policy provider?

Let us present to you our best performance yet for our participating life insurance funds for the year of 2017.
We have delivered a net investment return of 10.99%, almost three times that of 2016.

Not convinced yet? Here are our key attributes:

Financial Strength

We are the insurance arm of Maybank Group, which is among Asia’s leading banking groups and South East Asia’s fourth largest bank by assets. Furthermore, we are rated “A-” by Fitch in 2017 for our financial credibility and stable outlook.

Prudent Investment

Your money is invested using a sensible approach and we aim to offer you competitive bonuses for your policy.

Customer-Centricity

We are committed to keeping things as simple as possible as we place people over policies. There is no fine print as we believe in explaining what happens to your money in a clear and concise manner.

Humanising Insurance – keeping things simple

We uphold transparency in everything we do, which is why we believe in making things simple and easy for you to understand. Here’s a video we have put together to show how our Participating Fund works.

For more information, please refer to your personal Annual Bonus Statement which was sent to you recently and our Participating Fund Update booklet showcasing the update for the year ended 31 December 2017. If you would like to find out more about the participating fund, please refer to the Frequently Asked Questions (FAQ) below.

Alternatively, you may contact your representative, our customer care centre at +65 6887 8777, or email us at customer.service@etiqa.com.sg.

Frequently Asked Questions (FAQ)

1. When are bonuses reviewed and declared?

Bonuses are reviewed and declared annually. Each year, Etiqa will inform policyholders with participating policies of the amount of bonus that may be added to their policies.

The bonuses declared on your policy, if any, will be added permanently to your policy either on 1 April or at your policy anniversary in the year, whichever is later.

2. How are bonuses determined?

Bonus rates declared are approved by Etiqa’s Board of Directors, based on recommendations made by our Appointed Actuary. When making recommendations for the bonus declaration, the Appointed Actuary will consider key factors including past investment performance of the fund, economic outlook, claims experience, expenses, surrenders and lapses.

3. What are the key factors affecting performance of the participating fund and level of bonuses?

The following factors affect the performance of the participating fund and the level of bonuses:

  • Investment strategy

    Investment of the participating fund follows a strategic asset allocation which was decided when the fund was first set-up. This will be updated if there are significant changes in the profile of the fund. The current strategic asset allocation of the participating fund is 25% equities, 73% bonds and 2% cash.

  • The participating fund's investment return

    The fund’s investment return is critical to the participating fund’s performance. We manage the participating fund with a long-term view of delivering stable and reasonable returns for all customers, while maintaining the financial soundness of the fund.

  • Non-investment factors

    Several non-investment factors may impact performance of the participating fund. These factors include claims and surrender experience, as well as expenses.

4. What items and expenses are charged to the participating fund?

The value of the participating fund is affected by different types of expenses relating to the participating policies. These include claims payment, investment fees relating to the management of assets, marketing, other distribution-related expenses and general management expenses.

5. What does the participating fund invest in?

Etiqa aims to provide stable returns for your participating policy and the participating fund aims to achieve this by investing in a mix of assets, including bonds, equities and cash.

6. Who manages the participating fund at Etiqa?

Maybank Asset Management Singapore Pte. Ltd. (“MAMS”) manages our participating fund. MAMS is comprised of teams of specialist fund managers and is a fully owned subsidiary of Maybank Asset Management Group Berhad. The group manages assets in excess of US$7.7 billion (as at 31 December 2017).

For more information on MAMS, please visit http://www.maybank-am.com.sg.

7. What are the risks involved in the participating fund?

The key risk factors that could influence the performance of the participating fund include investment returns, lapses,
surrender experience, claims experience and expenses incurred.

8. How are risks shared?

The participating fund’s assets comprise accumulated premiums from different policies within the participating fund. The
accumulated assets will be used to fund policy benefits, expenses and charges incurred in the operation of the participating
fund, with surpluses to be invested accordingly. Therefore, key risks affecting the investment performance of the participating
fund are shared by all policies in the participating fund.

9. Will bonuses be revised?

Future bonuses are not guaranteed. Rather, they are dependent on the experience of the participating fund, particularly their past and expected future investment performance as well as claims experience and expenses.

When considering suitable bonus rates, we consider average performance over a period longer than one year to minimise any short term fluctuation. We will make changes to bonus rates only after thorough review.

10. How can I find out more about participating policies and bonuses?

If you have questions, please do not hesitate to contact your representative. Alternatively, you can contact our customer care
consultants at +65 6887 8777 or email us at customer.service@etiqa.com.sg.