The Pacific Life Assurance Co., Ltd. ("the Company", "we", "our", "us" or "PLA") offers participating insurance plans to suit market needs. Policyholders can share the profit (if any) from the product group determined by us. We aim to ensure a fair sharing of profits between policyholders and shareholders.

We determine and distribute the dividend to be payable to policyholders every year in accordance with all relevant legislative requirements and actuarial standards. The amount available for distribution as dividends to policyholders is based on the dividend policy approved by the Company's Board of Directors, after considering the advice of Appointed Actuary. The Board will oversee the equity between policyholders and shareholders.

In determining the amount of dividends, we consider both past experience and the future outlook for investment returns, which include interest earnings, the outlook for interest rates, and the effects of capital gains and losses on bonds due to changes in interest rates and/or changes in credit spreads.

Our investment philosophy is to deliver stable returns in line with the product's investment objectives and PLA's business and financial objectives. Our current investment strategy is to allocate assets attributed to the participating business into bonds to minimize the investment return volatility. The bonds are predominantly in corporate bonds trading in Hong Kong dollar or United States dollar in order to achieve higher returns.

The dividend may be subject to change depending on the market conditions and economic outlook. Should there be any changes in dividend amount, we will inform policyholders of the changes, together with the underlying reasons and the relevant impacts.