What is Policyholder's Bonus/Dividend Declaration Philosophy?

Prudential will determine and pay you bonus/dividend (if any) in accordance with the policy provision. Should your plan be with-profits by nature, you may be entitled to receive a share of the profits of PHKL's With-Profits Fund ("Fund"), in which your premiums are invested, through the addition of bonus/ dividend. The profits and the amount available for distribution among policyholders and shareholders are decided by Prudential in accordance with its Articles of Association. By participating in our With-Profits Fund through the plan, policyholders can receive their share of distributable profits, if any, from our With-Profits Fund in the form of non-guaranteed bonuses. No less than 90% of the distributable profit from our With-Profits Fund will be allocated to With-Profits policyholders. The calculation of the distributable profit of With-Profits Fund is performed separately and is not the same as that of the total profits of Prudential Hong Kong Limited. The bonus/dividend system aims to give policyholders a fair share of profits which are put through a "smoothing" process that is applied over the course of the policy life span.

In setting the bonus/dividend, there are 3 key objectives:
  • (a) to give returns which reflect the investment performance of the underlying assets;
  • (b) to smooth out the ups and downs of investment performance;
  • (c) to ensure all policyholders are treated fairly.
Types of Participating Plans
With-Profits Plans
Participating Plans
Types of Participating Plans
With-Profits Plans

Video Sharing

A simplified guide to Prudential’s With-Profits Fund video
GN 16 Introductory Video

Useful Information