Summary of life insurance contracts in 2015 and the decision on surplus dividend calculation

Last year more than 11,000 new life insurance contracts were concluded by SEB Elu- ja Pensionikindlustus, with more than 3,500 policyholders opting for extra cover. Loan insurance contracts were concluded in a majority of cases for loans secured by real estate – a total of more than 5,400 contracts, which is by 21% more than last year.

There were 69,456 insurance contracts in force at the end of 2015. Last year we made more than 566 loss assessments, paying out over two million euros to our clients as indemnities. The share of negative loss decisions was less than 4%. The main reason for declining was the absence of a relevant insurance cover.

As at the end of 2015, SEB Elu- ja Pensionikindlustus had 33,783 long-term savings contracts, with 21,226 of them involving the calculation of surplus dividends.

Calculation of surplus dividends

Based on the procedure of the calculation of surplus dividends (PDF) and the applicable insurance terms and conditions, SEB Elu- ja Pensionikindlustus made the following decision on the calculation of surplus dividends.

• Surplus dividends are reduced in case of contracts with reduced dividend component. The net result of the investment portfolio with reduced dividend component was EUR -1,024,813 last year, leaving 14% or EUR 143,653 to be covered by the clients.
• Surplus dividends are not calculated on the contracts with non-reduced dividend component.  No surplus dividends were assigned to the investment portfolio with non-reduced dividend component due to the continued environment of low interest rates and the expected low long-term rate of return resulting from it.
• Surplus dividends are not calculated on pension contracts. The total economic outcome of pension contracts was EUR -109,193. This means that the legally required 50% of the profit on the basis of the Funded Pensions Act is not distributed to the clients and no surplus dividends are assigned.

Regardless of the decision on the calculation of surplus dividends the agreed interest rate applies to the contracts with guaranteed interest rates.

Personal information related to the calculation of surplus dividends is available at the Internet Bank or in the notice you will receive shortly. Starting this year, we will send a personal notice only to those, whose contract participated in the distribution of profits. In other cases information related to the contract is available at the Internet Bank in the subdivision of insurance contracts.

We recommend that you review your insurance contract from time to time and assess whether the terms and conditions of the contract match your current needs and resources. Should you wish to make changes to your contract, kindly sign up for a free consultation at www.seb.ee/registreeri. In case of any questions please contact SEB Elu- ja Pensionikindlustus by calling 665 8020 or at the address kindlustusleping@seb.ee.