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Endowment

Fulfilment Ratio for Participating Products

To provide you an overview of the Company's dividend declaration history, the following show the fulfilment ratio for each of our participating products which have new policies issued in the previous five years prior to the reporting year 2020. These results are intended for reference purpose only and should not be taken as indicator of future dividend declaration and special bonus of the participating products. The actual fulfilment ratios in future may be lower or higher than the historical fulfilment ratios as illustrated. If you have an HSBC Life policy, you can review the policy value and other policy details through HSBC Personal Internet Banking or HSBC Mobile Banking app.

What is the fulfilment ratio for annual dividends?

The fulfilment ratio for annual dividends shows the extent to which the actual accumulated annual dividends and interest (excluding special bonus, if applicable) meets, underperforms or outperforms the illustrated amount at the point of sale for all relevant in-force participating policies at that policy year. In respect of each product and currency, fulfilment ratio for annual dividends for a policy year is calculated as the ratio of aggregate amount of actual accumulated non-guaranteed annual dividends, monthly income / annuity (with non-guaranteed interest, if applicable) against aggregate amount of accumulated non-guaranteed annual dividends and interest illustrated at point of sale across all relevant in-force policies in the reporting year.

The non-guaranteed interests, if any, earned on accumulated dividends and its interest as well as accumulated guaranteed coupons and/or annuities (if applicable) are also included and aggregated with the amount of annual dividends in the calculation of fulfilment ratio.

What is the fulfilment ratio for special bonuses?

The fulfilment ratio for special bonuses shows the extent to which the actual payout of special bonus meets, outperforms or underperforms the illustrated amount at the point of sale for all the relevant participating policies which were actually terminated in the reporting year. In respect of each product and currency, fulfilment ratio for special bonuses for a policy year is calculated as the ratio of aggregate amount of actual payout of special bonus against aggregate amount of special bonus illustrated at point of sale across all relevant policies which were actually terminated in the reporting year.

How should I interpret the result of fulfilment ratio?

The fulfilment ratio will be 100% when the non-guaranteed benefits (i.e. accumulated dividends and interest or special bonus) declared matches with the illustrated non-guaranteed benefits amount at the point of sale. If it is above 100%, it means larger amount of non-guaranteed benefits was declared as compared with the illustrated amount and if it is below 100%, it means the opposite. However, it should be noted that the fulfilment ratio can only reflect the non-guaranteed benefits declaration result for a certain past period of the policies issued and it cannot represent any future declaration plan and strategy over a longer term for the remaining policy years. For example, lower ratios can be observed for policies issued in 2010 & 2011 because they experienced through the decreasing interest rate environment and difficult market conditions in 2011 & 2012 caused by incident such as Eurozone debt crisis. As such, it is not suggested taking the fulfilment ratio result as an indicator of future non-guaranteed benefits declaration of the participating products.

Illustrative example

Assume Product A contains the following four HKD policies:

Policy Policy Effective Date Policy year Illustrated accumulated dividends and interest
(HKD)
Actual accumulated dividends and interest
(HKD)
1 13 Mar 2012 3 4,000 3,190 
2 27 Nov 2012 3 1,000 810
3 18 Feb 2013 2 2,500 2,400
4 1 Jan 2014 1 500 500

Assume Product A contains the following four HKD policies:

Policy 1
Policy Effective Date 13 Mar 2012
Policy year 3
Illustrated accumulated dividends and interest
(HKD)
4,000
Actual accumulated dividends and interest
(HKD)
3,190 
Policy 2
Policy Effective Date 27 Nov 2012
Policy year 3
Illustrated accumulated dividends and interest
(HKD)
1,000
Actual accumulated dividends and interest
(HKD)
810
Policy 3
Policy Effective Date 18 Feb 2013
Policy year 2
Illustrated accumulated dividends and interest
(HKD)
2,500
Actual accumulated dividends and interest
(HKD)
2,400
Policy 4
Policy Effective Date 1 Jan 2014
Policy year 1
Illustrated accumulated dividends and interest
(HKD)
500
Actual accumulated dividends and interest
(HKD)
500

The calculation of fulfilment ratios for HKD policies for reporting year 2015 are shown below:

Product Policy(ies) effective in 2012
(Policy year 3)
(HKD)
Policy(ies) effective in 2013
(Policy year2)
(HKD)
Policy(ies) effective in 2014
(Policy year 1)
(HKD)
Product A (3,190 +810) / (4,000+1,000) = 80% 2,400 / 2500 = 96 % 500 / 500 = 100%

The calculation of fulfilment ratios for HKD policies for reporting year 2015 are shown below:

Product Product A
Policy(ies) effective in 2012
(Policy year 3)
(HKD)
(3,190 +810) / (4,000+1,000) = 80%
Policy(ies) effective in 2013
(Policy year2)
(HKD)
2,400 / 2500 = 96 %
Policy(ies) effective in 2014
(Policy year 1)
(HKD)
500 / 500 = 100%

Fulfilment ratios

Fulfillment ratios for annual dividends - reporting year 2020

Currency

Policy effective in 2019

 

(Policy year 1)

Policy effective in 2018

 

(Policy year 2)

Policy effective in 2017

 

(Policy year 3)

Policy effective in 2016

 

(Policy year 4)

Policy effective in 2015

 

(Policy year 5)

Policy effective in 2014

 

(Policy year 6)

Policy effective in 2013

 

(Policy year 7)

Policy effective in 2012

 

(Policy year 8)

Policy effective in 2011

 

(Policy year 9)

Policy effective in 2010

 

(Policy year 10)

HKD
Closed to sale Closed to sale N/A
N/A 91% 96%
95% N/A 67%
67%
USD
Closed to sale Closed to sale 88% 88% 87% 96% N/A 89% 68% 65%

Fulfillment ratios for annual dividends - reporting year 2020

Currency HKD

Policy effective in 2019

 

(Policy year 1)

Closed to sale

Policy effective in 2018

 

(Policy year 2)

Closed to sale

Policy effective in 2017

 

(Policy year 3)

N/A

Policy effective in 2016

 

(Policy year 4)

N/A

Policy effective in 2015

 

(Policy year 5)

91%

Policy effective in 2014

 

(Policy year 6)

96%

Policy effective in 2013

 

(Policy year 7)

95%

Policy effective in 2012

 

(Policy year 8)

N/A

Policy effective in 2011

 

(Policy year 9)

67%

Policy effective in 2010

 

(Policy year 10)

67%
Currency USD

Policy effective in 2019

 

(Policy year 1)

Closed to sale

Policy effective in 2018

 

(Policy year 2)

Closed to sale

Policy effective in 2017

 

(Policy year 3)

88%

Policy effective in 2016

 

(Policy year 4)

88%

Policy effective in 2015

 

(Policy year 5)

87%

Policy effective in 2014

 

(Policy year 6)

96%

Policy effective in 2013

 

(Policy year 7)

N/A

Policy effective in 2012

 

(Policy year 8)

89%

Policy effective in 2011

 

(Policy year 9)

68%

Policy effective in 2010

 

(Policy year 10)

65%

Notes:

  1. Some of the above fulfillment ratio or Total payout ratio are shown as "N/A" because:      
    1. There are no relevant in-force policies in the respective policy year for some products; or  
    2. The dividend amount / special bonus amount / illustrated amount at point of sale is zero and hence fulfilment ratio or total payout ratio is undetermined; or
    3. The special bonus amount illustrated at point of sales was non-zero, but there were no relevant policies actually terminated in the reporting year and therefore there is no reportable statistics
  2. The figures shown in the above illustrative example are for illustrative purpose only.
  3. With effect from 1 July 2017, the Insurance terminology for Terminal Bonus has been updated to Special Bonus for the purpose of reading the policy provisions and other documents related to your policy. Please note that the change will not impact the original meanings and definitions of the insurance terminology for your policy concerned. For details, please visit https://www.hsbc.com.hk/insurance/info
  4. The products shown above are underwritten by HSBC Life (International) Limited ("the Company"), an HSBC Group insurance underwriting subsidiary. The Company is incorporated in Bermuda with limited liability and is authorized and regulated by the Hong Kong Insurance Authority to carry on long-term insurance business in the Hong Kong SAR. You are subject to the credit risk of the Company. Your premiums paid will form part of the Company's assets. Your do not have any rights or ownership over any of those assets. Your recourse is against the Company only. The above insurance products are long-term life insurance protection. They are not equivalent or similar to any kind of bank deposit. The proceeds received upon policy surrender, whether partial or full, may be less than the total premiums paid.