BSP Life Pays $16.4 Million in Bonuses

Date: 10/04/2015

Page Edit Page Edit BSP Life today announced that a total of $16.4 Million has been allocated as Bonuses to their Life Insurance Policyholders for the 2014 financial year. The 2014 Bonus allocation is $1.4
Million or 9.3% higher than 2013.

Page Edit Page Edi Managing Director, Mr Malakai Naiyaga said, "It gives me great pleasure to announce the 2014 bonus allocation as it enriches the value of our customer's life insurance policies and provides increased payout for policies maturing in 2015. As a team, we have worked hard to generate improved returns for our customers. Our investments grew by approximately $20 Million in 2014 taking the overall portfolio to over $478 Million. Bonuses are allocated from returns generated through our investment portfolio and the increase for 2014 reflects the improving financial standing of our business."

BSP Life declared a Reversionary Bonus Rate of 2% which is the same rate as 2013. The Terminal Bonus Rate increased from 0.25% in 2013 to 0.35% in 2014, which will be paid to
maturing policies this year, in addition to the Reversionary Bonus. Mr Naiyaga added that Bonus rates are dependent on the investment environment and could change in future. With BSP Life, bonus declarations are based on the sum insured and previously accumulated bonuses. For example, if the sum insured is $100,000 and previous bonuses are $15,000, the
2% Reversionary Bonus is applied to $115,000, to determine the new bonus for the year.

Example:

 Bonus Calculation
 2013
 2014
 Sum Insured
 100,000
 100,000
 Accumulated bonuses
 15,000
 17,300
 Total sum insured and accumulated bonuses
 115,000
 117,300
 Multiplied by the bonus rate
 2%
 2%
 New annual bonus
 2,300
 2,346

Only BSP Life policies attract bonuses on a compounding basis. This ensures returns are maximised for Policyholders until such time the life insurance policy matures. The bonuses are
payable on the earlier of maturity or death of the life insured.

Apart from the $16.4 Million bonus allocation, BSP Life earlier announced that their Policyholders received life and medical insurance benefits of $50.4 Million in 2014. BSP Life is now one of Fiji's largest investors with maturities from life insurance policies circulating throughout our economy helping Fiji grow.

Today BSP Life has over 150 professional Sales Advisors licensed by the Reserve Bank of Fiji who are trained to assist people with life insurance solutions and help them realise their life plans. BSP Life has 10 Customer Service Centres Fiji wide.