BSP Life Allocates $20.2m for Customer Bonuses

Date: 06/04/2017

BSP Life announced today that its 2016 Bonuses allocated to customer's life insurance policies is expected to be $20.2m, bringing the total Bonuses allocated in the last three years to $53.8m.

BSP Life's Managing Director, Mr Malakai Naiyaga said, "It's always a delight to make the Bonus Allocation announcement as these Bonuses directly benefit policyholders by building wealth on their life insurance policies with us. The value of the Bonus Allocation has increased year on year and is a direct result of the growth and strong performance of BSP Life's investment portfolio."

In 2014 BSP Life allocated $16.4m in bonuses, 2015 $17.2m and 2016 $20.2m.

Bonuses allocated on savings and investment type policies, accumulate over the term of the policy and add to the value of payouts at maturity or the untimely passing of the life insured. BSP Life is the only insurer to offer its customers two bonuses; a Reversionary Bonus and a Terminal Bonus. The company declared a Reversionary Bonus rate of 2% and increased the Terminal Bonus rate from 0.45% to 0.55%.

In explaining the Reversionary Bonus, Mr Naiyaga, stated that the declared bonus rate is calculated on the sum insured plus previously accumulated bonuses, ensuring returns are maximised for customers.

The example below outlines the calculation of the Reversionary Bonus and how it accumulates value for customers. Based on a sum insured of $100,000 and accumulated bonuses of 19,646, the 2% Reversionary Bonus is applied to $119,646, to determine the new bonus for the year, which is $2,392.92

Bonus Calculation




Sum Insured




Accumulated bonuses

$  15,000

$  17,300


Total sum insured and accumulated bonuses




Multiplied by the bonus rate




New annual bonus

$   2,300

$   2,346


Furthermore, the Terminal Bonus, is an additional bonus by BSP Life which is added to the policy in the actual year the policy matures or is paid out. It is based on the number of years a policy has been maintained with BSP Life until the date of the pay-out. The value of the Terminal Bonus allocation for 2016 is approximately $2M which is in addition to the $20.2M allocated under the Reversionary Bonus. The Terminal bonus will be added to all policies that matured or was paid out in 2016. 

Mr Naiyaga also drew attention to the growth of BSP Life's investment portfolio which at the end of February 2017, totalled F$582m, positioning BSP Life as a leading institutional investor in Fiji. In the last five years, the investment portfolio has grown by $174M representing a 43% growth.


"We continuously work to maximise returns from investments to enable the provision of bonuses to our Policyholders.