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Whole Life

Total Payout Ratio for Participating Products

To provide you an overview of the overall historical performance of the Company's participating products reflecting both the guaranteed and non-guaranteed benefits, the following show the total payout 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 performance of participating products. The actual payout ratios in future may be lower or higher than the historical payout 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 Total Payout Ratio?

The total payout ratio is calculated as the ratio of the aggregate actual total cash value against the aggregate illustrated amounts at the point of sale for all the relevant in-force participating policies at that policy year. The total cash value reflects both the guaranteed and non-guaranteed benefits which include guaranteed cash value, accumulated endowment coupons and interests (if applicable), accumulated annuities and interests (if applicable), accumulated dividends and interests, special bonus (if applicable) to be paid upon surrender etc.   

How should I interpret the result of total payout ratio?

The total payout ratio will be 100% when the actual total cash value matches with the illustrated amount at the point of sale. If it is above 100%, it means actual total cash value is larger as compared with the illustrated amount and if it is below 100%, it means the opposite. However, it should be noted that the total payout ratio can only reflect the performance for a certain past period of the policies issued and it cannot represent any future dividend plan and strategy over a longer term for the remaining policy years. As such, it is not suggested taking the total payout ratio result as an indicator of future performance of the participating products.

Illustrative example

Assume Product A contains the following five HKD policies:

Policy Policy Effective Date Policy year Guaranteed Benefits
(HKD)
(A)
Non-guaranteed Benefits Illustrated
(HKD)
(B)
Non-guaranteed Benefits Actual
(HKD)
(C)
Total Cash Value Illustrated (HKD)
(A) + (B)
Total Cash Value Actual
(HKD)
(A) + (C)
1 15 Jan 2012 4 20,000 5,500 3,000 25,500 23,000
2 20 Sep 2012 4 30,000 8,000 5,000 38,000 35,000
3 5 May 2013 3 70,000 5,000 4,000 75,000 74,000
4 30 Oct 2013 3 50,000 3,500 2,500 53,500 52,500
5 1 Apr 2014 2 50,000 500 500 50,500 50,500

Assume Product A contains the following five HKD policies:

Policy 1
Policy Effective Date 15 Jan 2012
Policy year 4
Guaranteed Benefits
(HKD)
(A)
20,000
Non-guaranteed Benefits Illustrated
(HKD)
(B)
5,500
Non-guaranteed Benefits Actual
(HKD)
(C)
3,000
Total Cash Value Illustrated (HKD)
(A) + (B)
25,500
Total Cash Value Actual
(HKD)
(A) + (C)
23,000
Policy 2
Policy Effective Date 20 Sep 2012
Policy year 4
Guaranteed Benefits
(HKD)
(A)
30,000
Non-guaranteed Benefits Illustrated
(HKD)
(B)
8,000
Non-guaranteed Benefits Actual
(HKD)
(C)
5,000
Total Cash Value Illustrated (HKD)
(A) + (B)
38,000
Total Cash Value Actual
(HKD)
(A) + (C)
35,000
Policy 3
Policy Effective Date 5 May 2013
Policy year 3
Guaranteed Benefits
(HKD)
(A)
70,000
Non-guaranteed Benefits Illustrated
(HKD)
(B)
5,000
Non-guaranteed Benefits Actual
(HKD)
(C)
4,000
Total Cash Value Illustrated (HKD)
(A) + (B)
75,000
Total Cash Value Actual
(HKD)
(A) + (C)
74,000
Policy 4
Policy Effective Date 30 Oct 2013
Policy year 3
Guaranteed Benefits
(HKD)
(A)
50,000
Non-guaranteed Benefits Illustrated
(HKD)
(B)
3,500
Non-guaranteed Benefits Actual
(HKD)
(C)
2,500
Total Cash Value Illustrated (HKD)
(A) + (B)
53,500
Total Cash Value Actual
(HKD)
(A) + (C)
52,500
Policy 5
Policy Effective Date 1 Apr 2014
Policy year 2
Guaranteed Benefits
(HKD)
(A)
50,000
Non-guaranteed Benefits Illustrated
(HKD)
(B)
500
Non-guaranteed Benefits Actual
(HKD)
(C)
500
Total Cash Value Illustrated (HKD)
(A) + (B)
50,500
Total Cash Value Actual
(HKD)
(A) + (C)
50,500

The calculations of total payout ratio for HKD policies for reporting year 2016 are shown below:

Product Policy(ies) effective in 2012
(Policy year 4)
(HKD)
Policy(ies) effective in 2013
(Policy year 3)
(HKD)
Policy(ies) effective in 2014
(Policy year 2)
(HKD)
Product A (23,000+35,000) / (25,500+38,000) = 91% (74,000+52,500) / (75,000+53,500) = 98% 50,500 / 50,500 = 100%

The calculations of total payout ratio for HKD policies for reporting year 2016 are shown below:

Product Product A
Policy(ies) effective in 2012
(Policy year 4)
(HKD)
(23,000+35,000) / (25,500+38,000) = 91%
Policy(ies) effective in 2013
(Policy year 3)
(HKD)
(74,000+52,500) / (75,000+53,500) = 98%
Policy(ies) effective in 2014
(Policy year 2)
(HKD)
50,500 / 50,500 = 100%

Total payout ratios

Total payout ratios - 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)

USD
100% Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched

Total payout ratios - reporting year 2020

Currency USD

Policy effective in 2019

 

(Policy year 1)

100%

Policy effective in 2018

 

(Policy year 2)

Not yet launched

Policy effective in 2017

 

(Policy year 3)

Not yet launched

Policy effective in 2016

 

(Policy year 4)

Not yet launched

Policy effective in 2015

 

(Policy year 5)

Not yet launched

Policy effective in 2014

 

(Policy year 6)

Not yet launched

Policy effective in 2013

 

(Policy year 7)

Not yet launched

Policy effective in 2012

 

(Policy year 8)

Not yet launched

Policy effective in 2011

 

(Policy year 9)

Not yet launched

Policy effective in 2010

 

(Policy year 10)

Not yet launched

*Special Bonus has been included in the calculation of Total Payout Ratio for HSBC Wealth Goal Insurance Plan II.

Total payout ratios - 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)

USD
100% 99% Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched Not yet launched

Total payout ratios - reporting year 2020

Currency USD

Policy effective in 2019

 

(Policy year 1)

100%

Policy effective in 2018

 

(Policy year 2)

99%

Policy effective in 2017

 

(Policy year 3)

Not yet launched

Policy effective in 2016

 

(Policy year 4)

Not yet launched

Policy effective in 2015

 

(Policy year 5)

Not yet launched

Policy effective in 2014

 

(Policy year 6)

Not yet launched

Policy effective in 2013

 

(Policy year 7)

Not yet launched

Policy effective in 2012

 

(Policy year 8)

Not yet launched

Policy effective in 2011

 

(Policy year 9)

Not yet launched

Policy effective in 2010

 

(Policy year 10)

Not yet launched

*Special Bonus has been included in the calculation of Total Payout Ratio for HSBC Ruby Global Life Insurance Plan.

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.