BSP Life to share record-breaking bonus allocation of $30 million

Good news for BSP Life customers as they will be sharing the record-breaking bonus allocation of $30 million for the 2019 financial year.

Managing Director Michael Nacola says the $30 million bonus is the highest ever in BSP Life’s over 140-year history.

While making the announcement, Nacola says he is delighted, on behalf of their board and the BSP Life Team, to announce the Reversionary Bonus Rate for 2019 as 2.5%, increasing from the rate of 2% in 2018. This is the sum added to the amount of an insurance policy payable at the maturation of the policy or the death of the person insured.

BSP Life says the Terminal Bonus Rate remains the same as 2018 at 0.85%.

He says the bonuses are calculated on the sum insured of life insurance policies, not on premiums paid, which delivers extremely good value.

Nacola says, in addition, the Reversionary Bonus, once declared, is guaranteed and is calculated on a compounding basis, adding further value for customers.

He says the increased bonus allocation is the culmination of efforts by the entire BSP Life Team, past and present, over the last ten years to build value for their customers.

The total declared Bonus allocation grew from $16 million in 2010 to $30 million in 2019.

BSP Life says total bonuses declared over the last ten years amounts to approximately $196 million.

Nacola further explained that by investing in BSP Life products that have an investment-backed benefit, customers were part of Fiji’s second-largest Institutional Investor; second only to the Fiji National Provident Fund.

He says the BSP Life Investment Portfolio has grown from $369 million to $765 million, an increase of $396 million in the last 10 years.

Nacola says this equates to over 100% growth in 10 years at an average compounded annual growth rate of around 8.44%.

COVID-19 Assistance

BSP Life has confirmed that they are offering assistance on a case by case basis for those impacted by the COVID-19 situation.

Nacola says they trust that the news of the 2019 bonus allocation provides comfort to their customers in these challenging times.

He says they also understand that circumstances have changed for many of the customers and they are there to help as best they can, to ensure they support them to maintain their policies.