Singapore life insurers maintain healthy reserve ratiosDecember 22 2017 by InsuranceAsia News Staff
With the bullish outlook in global markets providing impetus, life insurers in Singapore were able to maintain their reserve ratio requirements in 2016.
For this year, hopes are also high for life companies to perform better as they ride high on the wave of a continuing optimistic economic outlook.
Most of the 10 major life insurers in the country were able to at least pay out any non-guaranteed bonuses linked to participating or Par products.
Still, just two of the 10 players, AIA and Prudential, were able to maintain their buffers at more than a third of their total Par assets in 2016, down from three a year before.
Reserve buffers which support payouts are sometimes used to measure an insurer’s capacity to pay out any future non-guaranteed bonuses.
It is taken by comparing an insurer’s reserve buffer against its total assets.
- June 1
The change for life insurance JVs is proposed in the latest draft regulatory amendments under consideration.
- May 24
Dwindling sales of savings-type products and weaker investment returns are reducing income.
- May 14
Linked policies recorded the highest growth, up 82% from the same period last year.
- May 2
Shareholders will carry out a detailed evaluation of shortlisted bidders over the next couple of weeks.