If you have bought Life insurance policies, participating in form of bonuses depends to a great extent on performance of Life Participating Funds of your insurers.
Last year I wrote on the performances of these funds by three big Life insurers, namely Great Eastern Life (GE), NTUC Income and Prudential for the year 2010.
|Great Eastern Life||+ 1.54%||6.58%|
|NTUC Income||– 0.88%||5.9%|
Note: Figures for Prudential Insurance are for Singapore dollar products. It also has US dollar product with investment return of 4.2%.
2011 was a challenging year for all three Life insurers. Their investment returns were lower than the year before (2010). The investment returns for Great Eastern Life’s, Prudential and NTUC Income’s funds were 1.54%, 0.2% and negative 0.88% respectively. NTUC Income achieved negative return whereas the other two insurers still achieved positive returns, albeit at very low figures.
The market value of total assets for NTUC Income was $22.2 billion and for Great Eastern Life was $18.4 billion. The market size of the Regular Premium Life Sub-Fund of Prudential was $8.4 billion.
The asset mix for the funds was:
|NTUC Income||GE Life||Prudential|
The insurance companies were mandated to grow the Life Participating Funds with minimum risk-taking. Equity holdings were less than 30% for all three funds. Bonds were kept at about 60% for NTUC Income and Prudential. Great Eastern Life allocated 40% into bonds and kept 15% in cash and cash equivalents. The cash holding for GE Life was higher compared with the other two insurers.
As noted above, 2011 was a challenging year for fund managers. It is therefore difficult to get superior return if you were to invest in 2011.
Copyright © 2012, limkimtong for Living Investment
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