Fulfillment Ratio Total Cash Value Ratio
Long-term Average Actual Total Internal Rate of Return
Historical Crediting Interest Rate for Universal Life Products
Prudential With-Profits Plans / Shareholder-backed participating plans
Long-term Average Actual Total Internal Rate of Return

The following tables show the Long-term Average Actual Total Internal Rate of Return of the With-Profits Plans (life protection and saving products) issued by Prudential Hong Kong Limited (“PHKL”) which had been effective for more than 20 years. The Long-term Average Actual Total Internal Rate of Return is intended for reference purposes only and should not be taken as a projection of future performance or an indicator of actual returns of the participating products.

How to interpret the Long-term Average Actual Total Internal Rate of Return?

The Long-term Average Actual Total Internal Rate of Return represents the track records of PHKL participating policies with longer history which are calculated as the average of relevant sample policies’ actual total internal rate of return at the 20th policy year. It is another reference reflecting the past performance of such policies, and can also demonstrate the impact of time value on the total return.

Average actual total internal rate of return (IRR) @policy year 20 of the With-Profits Plans that have been effective for more than 20 years
With-Profits Plans Life protection Saving Average actual total IRR
@ policy year 20 (p.a.)
Diamond Gift Plan A 6.32%
Better Life Assurance Series *, B 6.12%
Achiever Endowment C 5.90%
Achiever Life Assurance B 5.75%
Best Start Plan A 5.50%
Golden Gift Plan A 5.32%
Whole Life and
Endowment B, C, D, E		 5.08%
PRUsave plus F 5.04%
PRUlife Series G, H 4.92%
Galaxy I 4.29%
Better Life Plus B 4.12%
Senior Plan J 3.74%
Better Head Start A 2.22%
*Better Life Assurance Series includes Better Life Assurance and Better Life Assurance II since 2023.
Sample policies: Non-smoker male
Issue age (Age next birthday [ANB]) Payment term Benefit term Sum assured
A 1 10 years Whole life USD 50,000
B 35 10 years Whole life USD 50,000
C 35 20 years 20 years USD 50,000
D 35 10 years Whole life HKD 400,000
E 35 25 years Whole life USD 50,000
F 35 10 years 20 years USD 50,000
G 1 21 years Whole life USD 50,000
H 35 65 years Whole life USD 50,000
I 35 15 years Whole life USD 50,000
J 65 10 years Whole life USD 50,000
Notes
  1. Average actual total IRR (p.a.) @ policy year 20 is the simple average of relevant sample policies’ actual total IRR on their policy year 20. The relevant sample policies have been effective for more than 20 years since 1981.
  2. The total IRR is the annual rate of growth that the insurance plan is going to generate. We calculate the total IRR by taking into account the annual premium inflows in various instalments, plus the Guaranteed Cash Value and the Non-Guaranteed Reversionary Bonus/Special Bonus when the policy surrenders/matures. The total IRR varies across different premium terms and payment modes.
  3. Reversionary Bonus/Special Bonus is not guaranteed. Please refer to our With-Profits Plan Booklet on https://pruhk.co/withprofits-en for the factors affecting the bonuses.
  4. The above calculation assumes there is no encashment of any cash value of bonuses, no cash value withdrawal, no reduction in sum assured, and no policy loan while the policy is in effect. All cash payment and cash dividend (if applicable) are assumed to have been cashed out by policyholders.
  5. The above plans are closed for new business.

These details are for reference only. Past performance is neither an indicator nor a guarantee of current or future performance and should not be the sole factor of consideration when selecting a product.

(Last updated on April 30, 2024)