AIA declares 9.46% dividend for its customers

Thursday, 16 February 2017 00:52 - - {{hitsCtrl.values.hits}}

AIA Sri Lanka said yesterday that it had declared a dividend of 9.46% for its policyholders.

“This is yet another year of AIA delivering impressive dividend figures to their customers and this consistency is testament to the strength and outstanding investment strategy of AIA’s life fund, which now stands at Rs. 32 billion,” the company said.

Since AIA introduced the system of declaring an annual dividend, the amount declared every year has always been well above the guaranteed amount promised by the company to its policyholders. The dividend is a significant advantage to AIA’s customers who are already enjoying protection benefits.

How exactly does AIA’s dividend system work and how does it affect AIA’s customers? AIA Sri Lanka’s Chief Actuary Frank Munro said: “We offer our customers an attractive return on investment, even when the market interest rates were low. Also our policyholders benefit significantly because their premium investments grow with compound interest and not just on a simple interest basis.”

“The premiums all policyholders pay are collected into a single ‘pool’ – in other words known as the life fund, which is prudently managed by the company to grow whilst protecting the initial investment. The dividend is a percentage of the investment earned from the life fund and is credited to each policyholder’s individual account after deducting fund management charges. This annual dividend is a simple, significant and transparent benefit for all AIA customers,” he added.

AIA Sri Lanka’s Deputy Chief Executive Officer and Chief Agency Officer Upul Wijesinghe said: “We are happy to announce a great dividend rate for yet another year. Essentially, these high rates of dividends translate into larger savings for all our customers and add to the superior pension and protection benefits that they enjoy. Our consistent track record of providing great dividends year on year, along with the financial safety and comfort our existing customers have come to appreciate and enjoy, is a clear indication of why more and more Sri Lankans are switching to AIA as their preferred insurance and pension provider.”