Rate Setting Philosophies

A number of factors are considered when determining the Rate(s) for your universal life insurance policy. These factors include, but are not limited to, future investment expectations, the cost of providing the guaranteed minimum Rate(s) applicable to the relevant policy, and the long-term affordability of such rate(s).

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 Rate by spreading out and managing gains and losses over a longer period of time.

In addition, the Rate(s) of the relevant policy may be affected by claims and persistency experience (including withdrawals, surrenders and policy lapses).

Rates are also subject to the guaranteed minimum rates* and lock-in rates as stated in the relevant policy contract, where applicable.

We will review the Rates of the relevant policies annually (or more frequently as needed).

The CIR policy, cap and participation rate policy, and resulting 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.

Our 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. To achieve this aim, we may invest in fixed and non-fixed income assets including but not limited to bonds, equities and derivatives.

Transamerica Life Bermuda invests primarily in investment-grade fixed-income assets which are well diversified across classes, sectors, and industries. As of 31 December 2024, 93.8% of our bonds carried investment grade ratings from external rating agencies such as Standard & Poor’s and Moody’s.

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.
 
Policies are issued by Transamerica Life (Bermuda) Limited, a company incorporated in Hamilton, Bermuda.