29 Apr 2010
Generous payout reflects insurer’s social purpose to provide value to policyholders
Income CEO will personally deliver cheques to the longest standing policyholders as part of the 40th Anniversary celebrations
Singapore, 29 April 2010 – NTUC Income, Singapore’s leading composite insurer, announced today a bonus payout of $415.5 million in 2010, which comes on the back of a strong performance in 2009.
As part of its 40th Anniversary celebrations, NTUC Income’s 2010 bonus payout will comprise three components. They are made up of:
- the regular Annual and Special bonus, amounting to $283.9 million,
- an additional 40th Anniversary Bonus of $123 million, and
- a first-of-its-kind Special Cash Bonus of $8.6 million.
In announcing its regular Annual and Special Bonuses, NTUC Income will maintain the yields and payouts on all insurance policies maturing or terminating in 2010. The Anniversary bonus being given out in 2010 is higher than the $89.1 million given out for the 35th anniversary in 2005, as the policyholder base is now larger.
The Special Cash Bonus will be given to the 250,000 policyholders who have been with the company for 10 years or more.
Social Purpose Delivers Value
The latest bonus payouts come after NTUC Income crossed the $3 billion mark in premiums, a milestone in the insurer’s 40 year history. In achieving this, NTUC Income also set new records in weighted life insurance new business premiums, annuities, health and motor businesses as well as through sales in the financial advisers channel.
NTUC Income Chief Executive Tan Suee Chieh said the insurer’s payout reflects its philosophy as a social enterprise to provide better value for policyholders.
“Over the last three years, NTUC Income directed its energy to modernise and to secure leadership in the Singapore market. Our social purpose is to provide better value to our policyholders. With last year’s strong financial performance, we are able to give more to our policyholders. Our challenge over the next few years is for our social purpose to create greater impact for the benefit of policyholders.”
In the spirit of its 40th Anniversary celebrations and to give thanks to the support of some customers who have been with the insurer since the early days of its inception, Mr Tan visited the homes of several policyholders and personally handed the Special Cash Bonus cheques and gift hampers to them.
NTUC Income has been extending help to social causes in recent years. When the financial crisis peaked in 2009, NTUC Income decided to help those who needed assistance most during tough times. NTUC Income then committed $1 million to help families of retrenched and low income workers under NTUC’s Labour Movement U Care Fund in 2009. A further $1 million will be extended to U Care Fund for 2010 and this is in addition to the $2 million it sets aside for charity and other community sponsorships/projects. Recently, in early April, NTUC Income launched a free insurance scheme for low income families, which will cost the insurer up to $500,000 over the next three years.