The Crediting Interest Rates (CIRs) are the rates at which interest is credited to help grow the value of applicable life insurance policies.
In this section you can find our CIRs philosophy, as well as the historical CIRs of both our current and discontinued universal life plans, for which we have issued new policies since 2010 with in-force policies as of the last reporting year.
Below are the historical Crediting Interest Rates of both our current and discontinued universal life products, for which we issued new policies since 2010 with in-force policies as of reporting year 2024. The rates shown are the weighted average of the crediting interest rates of each product in a given year with reference to the guidelines provided by the Insurance Authority of Hong Kong.
Products that are not listed below were either launched less than one year ago (meaning no historical crediting interest rate is available at this time) or are products that do not have in-force policies as of reporting year 2024.
The historical Crediting Interest Rates shown below are for reference only. They should not be taken as an indicator of future Crediting Interest Rates, which may be higher or lower than in the past.
Please note that the Crediting Interest Rate on any given policy depends on factors such as the date that the policy was issued, the sum assured and the date of each premium payment. If you are a policy owner, please refer to your annual statement for the Crediting Interest Rate applicable to your policy.
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Universal Life | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.67% | 3.87% | 4.03% |
Universal Life Alpha
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Universal Life | N/A | N/A | 4.0% | 4.0% | 4.01% | 3.90% | 3.50% | 3.25% | 3.39% | 3.42% |
Universal Life 2
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Universal Life 2 | N/A | 4.20% | 4.20% | 4.20% | 4.12% | 3.76% | 3.42% | 3.13% | 3.28% | 3.30% |
Universal Life and Universal Life (Version 1.1)
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Universal Life and | 4.24% | 3.96% | 3.82% | 3.71% | 3.43% | 3.33% | 3.14% | 3.12% | 3.27% | 3.30% |
Universal Life Plus
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Universal Life Plus | 3.89% | 3.80% | 3.47% | 3.47% | 3.29% | 3.18% | 3.08% | 3.02% | 3.01% | 3.01% |
TransUltra Elite II
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransUltra Elite II | 4.03% | 3.72% | 3.63% | 3.53% | 3.50% | 3.24% | 3.04% | 3.03% | 3.19% | 3.20% |
TransUltra Elite
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransUltra Elite | 4.06% | 3.72% | 3.36% | 3.22% | 3.34% | 3.20% | 3.01% | 3.01% | 3.20% | 3.20% |
TransUltra
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransUlra | 4.06% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
TransHorizon
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransHorizon | 3.72% | 3.02% | 3.02% | 3.01% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% |
TransACE Elite III
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransACE Elite III | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% |
TransACE Elite II
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransACE Elite II | 3.11% | 3.03% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% |
TransACE Elite
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransACE Elite | 3.01% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% |
TransACE CV
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransACE CV | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
TransACE
Product Name | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
TransACE | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
Notes:
1. The Crediting Interest Rates shown are before any relevant policy charges (e.g. cost of insurance, monthly expense charge, etc.).
2. The Crediting Interest Rates shown have not taken into account any bonus Crediting Interest Rates.
3. “N/A” denotes that the product was not available in the relevant year.
The Crediting Interest Rates for our policies are primarily based upon the performance of the underlying investments of Transamerica Life Bermuda, after allowing for the costs incurred by, and profits attributable to, the company. Performance of the underlying investments, and therefore the Crediting Interest Rates, may be affected by changes in the financial markets and economic conditions which include shifts in interest rates, corporate bond spreads and asset default rates.
A number of factors are considered when determining the Crediting Interest Rates for your universal life insurance policy. These factors include, but are not limited to, future investment expectations, the cost of providing the guaranteed minimum Crediting Interest Rate applicable to your policy, and the long-term affordability of the Crediting Interest Rates.
Transamerica Life Bermuda recognises that market conditions can be unpredictable and investment performance can be volatile in the short term. Through our investment philosophy and approach, we aim to deliver a fair return determined from the underlying investments and ensure a stable Crediting Interest Rate by spreading out and managing gains and losses over a longer period of time.
In addition, the Crediting Interest Rate of your policy may be affected by claims and persistency experience (including withdrawals, surrenders and policy lapses).
Crediting Interest Rates are also subject to the guaranteed minimum Crediting Interest Rates* and lock-in Crediting Interest Rates as stated in your policy contract, where applicable.
We will review the Crediting Interest Rates of your policies annually (or more frequently as needed).
The Crediting Interest Rate policy and resulting Crediting Interest Rates are formulated based on actuarial principles and professional judgment to balance the interests of policyholders and shareholders over the long run. The recommendations made on our policies and rates are approved by our Board of Directors, which includes representation of Non-Executive Independent Director(s).
* Guaranteed product features are dependent upon the claims-paying ability of the issuer.
Investment strategy
Recognising the need for sound financial security, Transamerica Life Bermuda combines performance-driven investment strategies with prudent risk management frameworks to help our high-net-worth customers achieve this while also providing them with peace of mind. We aim to maintain stable returns for customers throughout their policy terms by securing high-quality assets that provide attractive risk-adjusted returns.
Transamerica Life Bermuda invests primarily in investment-grade fixed-income assets which are well diversified across classes, sectors, and industries. As of 31 December [2023], [93.9%] of our bonds carried investment grade ratings from external rating agencies such as Standard & Poor’s and Moody’s, and [4.8%] carried the highest possible credit rating of AAA.
Security selection and credit risk analysis are managed by asset class-specific experts within Aegon Asset Management. Robust risk management frameworks ensure that all investment-related risks – including credit risk – remain within limits set by Transamerica Life Bermuda’s management and approved by our Board of Directors.
Our investment portfolios are 100% US dollar-denominated to match the currency of our product offerings.
Our investment strategy may change over time in response to conditions such as changing financial markets or economic conditions, new product offerings, and regulatory guidelines. Material updates to our Crediting Interest Rate philosophy or investment strategy will be published on our website at www.transamericalifebermuda.com.
Policies are issued by Transamerica Life (Bermuda) Limited, a company incorporated in Hamilton, Bermuda.