Ceylinco Life declares Rs 955 m in annual bonuses

BONUS: Life insurance leader Ceylinco Life has celebrated its strong solvency margin with the declaration of a colossal Rs 955 million in annual bonus payments to policyholders from the surplus generated by its Life Fund in 2006.

The bonuses paid out after completion of an annual actuarial valuation of the company’s Life Fund, benefited more than 275,000 eligible policyholders, the company said this week.

According to the statutory actuarial valuation of Ceylinco Life’s Life Fund by the eminent independent international consulting actuaries Messrs Watson Wyatt Worldwide, the company’s Life Fund stood at Rs 13.9 billion at the end of 2006, indicating a healthy growth of 17 per cent during the year.

Significantly, the life solvency margin (the difference between the value of admissible assets and liabilities) maintained by Ceylinco Life’s Life Fund is more than five times that stipulated by the Insurance Industry Act, the company disclosed.

As much as 90 per cent of the surplus generated from participating business has been reserved for payment of bonuses to participating policies, Ceylinco Life Director Amali Seneviratne said.

Ceylinco Life declares bonuses from the very first year of issue of a policy, enabling even a policyholder who obtained a policy in December 2006 to receive a bonus allotment as at 31st December, she explained.