GlobalCapital Life Insurance declares bonus rates

GlobalCapital Life Insurance has declared its annual bonus rates for participating policyholders, based on the investment performance of the company’s Life Fund during the last financial year.

A three per cent annual reversionary bonus rate is to be paid on all its interest sensitive life insurance policies in force as at December 31, 2012. This bonus rate applies across all interest-sensitive polices except on those where higher guaranteed rates are built within the policy such as the MoneyPlus which offers a guaranteed bonus rate of 3.5 per cent.

The reversionary bonus rate declared for paid-up policies is 1.5 per cent. Over the last 10 years (between 2003 and 2012) GlobalCapital Life Insurance has declared an average annual bonus rate of 3.79 per cent.

“The financial markets worldwide in 2012 continued to be volatile, ending the year mixed in performance. The property markets continued to be stagnant and declining. Malta’s financial markets have remained unpredictable although we have seen a modest improvement in the second half of 2012 with a 3.45 per cent gain while property markets continued to experience stagnation and downside pressure in both sales and rental markets.

Against another difficult year where investment returns have been negatively affected and interest rates remained low, GlobalCapital Life Insurance Ltd has declared higher bonus rates underlining our cautious approach,” stated CFO Reuben Zammit.

The Life Fund is made up of investment instruments which include bonds, equities, funds, real estate and bank deposits.

The declared reversionary bonus rate applies to all the company’s regular premium and single premium interest-sensitive endowment life insurance policies.