Prudential Hong Kong launches Golden Harvest RMB Endowment Plan II offering a guaranteed return#1 in RMB and potential upside from RMB appreciation#2

22/08/2011

(22 August 2011 - Hong Kong) The Prudential Assurance Company Limited ('Prudential Hong Kong') has launched a Renminbi ('RMB')-denominated endowment plan, Golden Harvest RMB Endowment Plan II, to provide customers with the benefits of a guaranteed cash return#1 and at the same time, seize the potential appreciation of the RMB#2.

Golden Harvest RMB Endowment Plan II is a single premium five-year endowment product offered to customers between the age of 1 and 65. It guarantees to pay customers 111.5%#1 of the single premium paid in RMB at the end of the five-year policy period, which is equivalent to an interest rate of 2.2%#1 per annum in RMB. To allow flexibility to customers, the minimum single premium payment of RMB 80,000#3 can be paid in either RMB or in an equivalent amount of HKD.

Mr. Iain McConnachie, Chief Marketing Officer of Prudential Hong Kong says, "High confidence in the robust mainland China economy and potential RMB appreciation has driven strong demand for RMB endowment products. Adhering to our credo of "Always Listening, Always Understanding", we are launching this product to meet consumer demand for an RMB endowment product that comes with guaranteed returns in times of high market volatility and uncertainty. The plan also helps consumers achieve their medium term financial goals with the added protection of life cover."

The plan is easy to start and does not require medical underwriting#4 if the total Sum Assured#5 does not exceed the maximum limit of equivalent of HK$10,000,000 per Life Assured. The plan also features a life cover of 101% of the Sum Assured#5 or the Guaranteed Cash Value in RMB, whichever is higher#1.

The plan is only available during the promotional period. The information listed above is for reference only. For more product information, terms and conditions and important notes of this plan, customers are welcome to call the Prudential Hong Kong hotline on 2281 1333.

 

#1 Guaranteed return is calculated in RMB upon maturity of the policy (i.e. the 5th policy anniversary day).Early surrender of the policy before maturity will NOT enjoy the guaranteed return, but customers will receive the Guaranteed Cash Value payable at the relevant time. Early surrender of the policy may result in getting back considerably less than what the customers have paid in.
#2 There is a risk that customers could lose a substantial portion of his/her benefit value after currency conversion from RMB to HKD, if the RMB depreciates substantially against the HKD when a benefit becomes payable under the policy.
#3 Customers shall pay the single premium either in RMB or in an equivalent amount of HKD calculated by reference to the designated RMB/HKD exchange rate Prudential Hong Kong specified for premium payment under the plan. The amount of Maturity Benefit, Death Benefit or Guaranteed Cash Value payable shall be in RMB only.
#4 No medical underwriting is applicable for policy(ies) with a maximum Sum Assured#5 equivalent to HK$10,000,000 per Life Assured. The maximum Sum Assured per Life Assured means the aggregate Sum Assured for policy(ies) issued in respect of the Golden Harvest RMB Endowment Plan II and designated single premium insurance plan(s) of Prudential Hong Kong. The maximum Sum Assured per Life Assured under Golden Harvest RMB Endowment Plan II is RMB 5,000,000.
#5 The Sum Assured of the policy serves only as an amount for the calculation of premium and other policy values of the plan. It is not equivalent to the amount of Death Benefit payable in the event of death of the Life Assured.

Special note to the editor:

Prudential plc (英國保誠集團), was established in the United Kingdom in 1848 and is headquartered in London. With its affiliated companies in the UK, the US and Asia, it constitutes one of the world's leading financial services groups.

Prudential plc is not affiliated or related in any manner with Prudential Financial, Inc. (保德信金融集團), a company whose principal place of business is in the United States.

You and your reporters are cordially reminded to clearly differentiate between the two companies in your news reporting.

For enquiries, please contact:

Jenny Auw Yong

Senior Manager - Corporate Communications

The Prudential Assurance Company Limited

+852 2977 3722

+852 2977 1116

Kate Siu

Assistant Manager - Corporate Communications

The Prudential Assurance Company Limited

+852 2977 8462

+852 2977 1209