Further product information

Historical Crediting Interest Rates of Universal Life Products

Below are the historical Crediting Interest Rates of our current universal life products and the discontinued universal life products for which we issued new policies in the previous 5 calendar years prior to the reporting year 2020. 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 are either launch less than one year ago (therefore no historical crediting interest rate is available at this time) or having no new policies issued in the previous 5 calendar years prior to the reporting year 2020.

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 policy depends on factors such as the date that the policy is issued, the sum assured and the date of each premium payment. Therefore, if you are a policy owner, please refer to your annual statement for the actual crediting interest rates applicable to your policy. 

Crediting Interest Rates for Reporting Year 2020

Universal Life Alpha

Universal Life 2

Universal Life and Universal Life (Version 1.1)

Universal Life Plus

 Product was not available in the relevant year.


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.

Crediting Interest Rate Philosophy for Universal Life Plans

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 any changes in the financial markets and economic conditions which include changes 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, crediting interest rates of your policy may be affected by claims and persistency experience (including withdrawals, surrenders and policy lapses).

The 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 our 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. The recommendations made on the policy and rates are reviewed by our Risk & Capital Committee which are then approved by our Board of Directors. At least one-third of our Board is composed of Independent Non-Executive Directors.

* Guaranteed product features are dependent upon the claims-paying ability of the issuer.

Investment strategy

Recognising our customers' needs for sound financial security, Transamerica Life Bermuda employs effective investment strategies and a prudent risk management culture in order to meet our commitment of safeguarding our customers' wealth for their lifetime. Our investment strategy is focused on securing high-quality investment-grade fixed-income assets that provide fair value in terms of risk and rewards. As of 31 December 2019, 95.7% of our bonds are investment grade bonds of which 16.1% were rated AAA. This strategy aims to maintain stable returns for our customers over the tenure of their policy.

Credit ratings are sourced from independent credit rating agencies including Standard & Poor's, and Moody's and are factored into our in-depth internal credit analysis. The portfolio is constructed by employing a robust risk management and valuation approach along with investment expertise with regards to security selection. Concentration limits are also established to ensure diversification across sectors and industries. Subject to Transamerica Life Bermuda's investment and risk management policies, we may hold a limited amount of below-investment grade bonds if they are deemed to offer good value to the portfolio. We may also utilise derivative instruments for the purpose of efficient portfolio management and better matching of assets and liabilities.

Assets are invested predominantly in the United States and in US-dollar-denominated assets to match the currency of our products. We may hold a limited portion of bonds from emerging markets in our portfolio if we believe they can add value and enhance returns in the overall bond portfolio.

Transamerica Life Bermuda's investment strategy may be subject to change due to factors including, but not limited to, changes in or the outlook of financial market and economic conditions.

Any update of the crediting interest rate philosophy and the investment strategy will be published on our website.

Life insurance policies are issued by Transamerica Life Bermuda, a company incorporated in Hamilton, Bermuda.

Updated Insurance Terminology

We have changed certain insurance terminology in our product materials with reference to the guidelines provided by the Insurance Authority of Hong Kong, including Product Summary, illustrations and the related correspondence. Please refer to the mapping table below.

Old terminology Updated terminology
Accumulation Value  Account Value
Administrative Charges Premium Charge
Crediting Rate Crediting Interest Rate
Current Interest Rate  Current Crediting Interest Rate
Face Amount Sum Assured
Guaranteed Minimum Interest Rate Guaranteed Minimum Crediting Interest Rate
Interest Rate Crediting Interest Rate
Lock-in Interest Rate Lock-in Crediting Interest Rate
Lock-in Interest Rate Period Lock-in Crediting Interest Rate Period
Planned Periodic Premium Period Planned Premium Payment Term
Surrender Penalty  Surrender Charge
Surrender Penalty Factor Surrender Charge Rate
Surrender Penalty Period Surrender Charge Period
Policy Value Cash Value / Account Value (depends on the context)