Factors in determining dividends/bonuses for participating policies

In addition to providing guaranteed benefits1, participating policies2 allow to share the divisible profit attributable to the participating business in forms of non–guaranteed dividends/bonuses3. The declared dividend/bonus3 depends on a number of key factors including but not limited to:

  • Investment performance of asset portfolio for participating policies depends on interest earnings and any changes to the market value of the asset portfolio under actual market condition and the investment strategy of the asset portfolio;
  • Benefits payable (where applicable, such as on death, surrender, maturity, critical illness, terminal illness, etc) as well as policy persistency experience and reinsurance;
  • Operating expenses, e.g. administrative cost, investment cost, tax and commission to the intermediaries; and
  • Future outlook on investment, claims, persistency, and expense in the long term.

Although these factors might change, smoothing of dividends/bonuses over time will avoid large fluctuations in the dividends/bonuses3 declaration from year to year. Some of the gains in a good performance year will be retained so that dividends/bonuses are less affected when the results are not as favourable. Dividend/bonus3 declaration is reviewed at least once a year. Dividend/bonus3 declaration is governed by Aviva Dividend Committee which provides independent advice on the management of participating business. The declaration is approved by the Board of Directors. The dividend/bonus3 mechanism of participating policies is pooled for a group of policies.


  1. Guaranteed benefits such as guaranteed cash value, guaranteed death benefit, guaranteed cash coupon, guaranteed annual income and additional bonus. Please refer to your policy contract regarding which form(s) of guaranteed benefit(s) is/are applicable to your policy.
  2. Participating policies cover the following products: RetireRich Income Plan, SaveEnhancer Endowment Plan, Life 100 Whole Life Protection, LifeTrack Assurance Series – Endowment Plan, Child Education Savings Plan, Target Achiever Savings Plan, Enricher Savings Insurance Plan, Enricher 2 Savings Insurance Plan, MyCare Early Stage & Major Crisis Cover, SmartRich Income Insurance Plan, IncomePro Insurance Plan, Aviva LifeReward Insurance Plan, Aspire Endowment Plan and MyWealth Prime Savings Insurance Plan.
  3. Dividends/bonuses include but are not limited to annual dividend, annual income, terminal dividend, reversionary bonus, terminal bonus and interest on accumulated annual dividend/guaranteed cash coupon/guaranteed annual income/additional bonus, where applicable.