Principles of calculation of additional interests

Principles of Calculation of Additional Interests on Accumulative Guaranteed Interest Life Insurance Contracts

In accordance with accumulative guaranteed interest life insurance contracts, the insurance company undertakes an obligation to pay on the sum accumulated by a specific insurance contract a guaranteed interest at the rate indicated in an insurance policy.

Once per year, the insurance company, at its sole discretion and with due consideration of results of its activity, may allocate an additional interest the rate and procedure for distribution of which, in every individual event, is established in accordance with the principles indicated below.

An additional interest means the share of the profit earned by the insurance company, which by the decision of the insurance company may be added to the sum accumulated on a life insurance contract in proportion to the sum accumulated by a specific insurance contract.

A decision regarding the allocation of an additional interest is to be adopted at the end of a calendar year by the supervisory board of the insurance company at the suggestion of the board of directors.A decision regarding the allotment of an additional interest is notified to policyholders by publishing an announcement in the website of the insurance company as well as by submitting annual reports.

Once a decision on the allotment of an additional interest is adopted, this additional interest is applied to all accumulative guaranteed interest life insurance contracts in force provided that those contracts meet the criteria set by the decision and came into force not later than on 30 November of a current calendar year.

An additional interest is calculated in accordance with the insurance company‘s technical plan for the allocation of an additional interest and technical plans for respective insurance products.

Please find below the rates of annual interests that include both an additional interest and a guaranteed interest:

Year Sum of a guaranteed interest and an additional interest
2017 2.75%
2016 2.5%
2015 3%
2014 3,25%*
2013 4%*
2012 An additional interest has not been accounted
2011 3,75%*
2010 4,50%*
2009 4,50%*
2008 3,50%*
2007 3,50%*
2006 4,50%*
2005 Guaranteed interest + 1%
2001-2004 Guaranteed interest + 2%

* An allocated additional interest and the guaranteed interest set by an insurance contract taken together do not exceed the sum indicated, e. g.:3.25% = 2% guaranteed interest + 1.25 % additional interest.

If an individual insurance contract foresees a guaranteed interest rate that is over the sum of interest rates indicated in the table above, then an additional interest will not be added to such a contract for a relevant year.