Sanlam bonus declaration

SANLAM’S Stable Bonus Fund declared payouts rates of between 7,25 per cent and 7,75 per cent for 2003.

These were significantly higher than the bonuses for 2002, and comfortably beat the 2003 inflation rate, according to Sanlam Namibia’s Corporate Actuary, Stefan Du Preez. “As far as possible, stable policies offer consistent growth from year to year.But the bonus rate for a specific year is not necessarily equal to the growth achieved by the investment in the portfolio.In times of high returns, a portion of the actual growth is retained for periods when returns are lower.This is then added to equalise the bonus rate over a number of years.This offers policyholders a measure of protection against the risk of a volatile market,” said Du Preez.The 2003 bonus rate for endowment policies was 7,25 per cent and the corresponding bonus rates for retirement annuities are 7,75 per cent.Sanlam South Africa’s corresponding rates declared for the same year are 4,5 per cent and 5 per cent.It was possible to declare higher rates for the Namibian policies due to the fact that the Namibian policies where transferred to Sanlam Namibia and no longer form part of the Sanlam South Africa business, Mulele Simataa, Sanlam’s senior marketing manager explained.Sanlam’s bonus rates for 2003 were 5 per cent higher than the CPI inflation rate, he added.”As far as possible, stable policies offer consistent growth from year to year.But the bonus rate for a specific year is not necessarily equal to the growth achieved by the investment in the portfolio.In times of high returns, a portion of the actual growth is retained for periods when returns are lower.This is then added to equalise the bonus rate over a number of years.This offers policyholders a measure of protection against the risk of a volatile market,” said Du Preez.The 2003 bonus rate for endowment policies was 7,25 per cent and the corresponding bonus rates for retirement annuities are 7,75 per cent.Sanlam South Africa’s corresponding rates declared for the same year are 4,5 per cent and 5 per cent.It was possible to declare higher rates for the Namibian policies due to the fact that the Namibian policies where transferred to Sanlam Namibia and no longer form part of the Sanlam South Africa business, Mulele Simataa, Sanlam’s senior marketing manager explained.Sanlam’s bonus rates for 2003 were 5 per cent higher than the CPI inflation rate, he added.