Manulife Insurance is expecting to raise over MYR100m from Malaysian investors in the first year for its guaranteed annuity product, which it launched this summer.
Deputy chief executive officer Kevin McWhinney told local journalists the firm expects half of all premiums to come from the plan: “We have collected more than MYR50m in premiums since we introduced the product in July,” he said.
Secure Income Plus is Malaysia’s first investment-linked retirement income plan, according to Manulife.
Its 'five-for-life' structure offers a guaranteed 5% pa from age 66, regardless of investment performance. The product also offers growth potential via a loyalty bonus and step-up mechanism, depending on the performance of the underlying funds.
Manulife has appointed HSBC Bank as distribution partner for the product. The provider said it introduced a similar product in the US about five years ago, in Japan in 2005, Canada in 2006, and in Hong Kong, Singapore and Taiwan in 2007. The plan has experienced tremendous market success in North America and Asia it said.