GlobalCapital Life Insurance Ltd has declared a 3.25 per cent annual reversionary bonus rate payable on all its interest sensitive life insurance policies in force as at December 31, 2009. This bonus rate applies across all interest sensitive polices except on those where higher guaranteed rates are built within the policy. Over the last 10 years (between 2000 and 2009) GlobalCapital Life Insurance Ltd has declared an average annual bonus rate of 4.83 per cent.
"The company's underlying investment portfolio has performed well in 2009 which has allowed the board to allocate a bonus rate of 3.25 per cent to policy holders. Given the difficult financial and economic climate, the declared bonus rate given to our policy holders is both a consistent and competitive one, particularly when one bears in mind the very low interest rate environment such as the European Central Bank Euro Base Rate currently at one per cent.
"GlobalCapital Life Insurance has registered a significant improvement in performance, declaring a profit before tax of €1,974,278 in 2009 compared to the loss before tax of €2,215,761 in 2008," said Nicholas Portelli, chief executive officer, GlobalCapital plc.
In declaring this annual reversionary bonus, the company takes into consideration the performance of the investment assets held within the company's Life Fund. The Life Fund is made up of carefully selected and diversified investment instruments which include bonds, equities, funds, real estate and bank deposits. The mix of such investment tools and the rating of the underlying assets is monitored and approved by the investment committee of the company. Once declared, reversionary bonuses are guaranteed by the company, if the policy is held till maturity.
The declared reversionary bonus rate applies for all the company's regular premium and single premium interest-sensitive endowment life insurance policies. The company's most popular regular premium plan is the Protected Savings Plan, an interest-sensitive endowment policy aimed at helping policyholders save money for their future while providing a means of financial protection. Similarly the 3.25 per cent reversionary bonus rate applies also for the single premium interest sensitive life insurance policies such as the successful GlobalCapital Investment Bond.
Past performance is not necessarily a guide to future performance. The reversionary bonus rate is gross and does not take into account the charges applicable for the respective life insurance policies.