Returns on Life Insurance Participating Funds – 2012

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.

The table below shows the performance of these funds by three big Life insurers, namely Great Eastern Life (GE), NTUC Income and Prudential for the year 2012.

Investment Returns

  2012 2011 2010
Great Eastern Life 9.76% + 1.54% 6.58%
Prudential 11.0% + 0.2% 7.2%
NTUC Income 8.56% – 0.88% 5.9%

Note: Figures for Prudential Insurance are for Singapore dollar products. It also has US dollar product with investment return of 8.3% (2011: 4.2%).

2012 was a turn-around year for all three insurers. Prudential had the best investment return at 11.0% compared to Great Eastern Life (9.76%) and NTUC Income (8.56%). All three achieved good return of at least 8% p.a.

The market value of total assets for NTUC Income was $24.9 billion and for Great Eastern Life was $19.2 billion. The market size of the Regular Premium Life Sub-Fund of Prudential was $9.9 billion.

The asset mix for the funds was:

  NTUC Income GE Life Prudential
Equity 24% 26% 27%
Bonds 63% 49% 54%
Loans/Cash/Others 10% 17% 11.5%
Properties 3% 8% 7.5%

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. NTUC Income had lowest equity holding and highest bond holding. This was a conservative asset allocation amongst the insurers.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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