(EN) 
Canada - ENParticipating policyholder disclosures
If you own an RBC Growth Insurance or RBC Growth Insurance Plus policy, your premiums are invested in an account that you and other participating policyholders can receive earnings from. These earnings are paid out as dividends to each policyholder according to the dividend payout option chosen.
Downloadable PDFs
Dividends are not guaranteed. We set our policy dividend rate each year based on factors such as how invested assets perform, our expenses and mortality experience.
Effective April 1, 2025, if you would like to borrow from the accumulated cash value in your policy, the current interest rate for policy loans is 6.95%. This rate is reviewed on an annual basis, and is based on the Royal Bank prime rate +2%.
Dividends held in a dividends on deposit account earn interest daily at a rate we set which may change from time to time. The current interest rate is 2.3%.
Participating policyholder financial disclosures – Participating Whole Life
All numbers are in millions of dollars, rounded to the nearest million, unless otherwise noted.
The insurance contract liabilities held are ($6)1 (2023 – $5) for the Participating Whole Life insurance portfolio, which was launched in 2021.
No dividend stabilization reserve was held in 2024 due to the small size of the portfolio.
A statement of the changes for the participating account in the last two financial years, in thousands of dollars, are shown below.
Sub-account name |
2024 |
2023 |
|---|---|---|
|
i. Account surplus, start of year |
35,4472 |
38,467 |
|
ii. Currency adjustment |
0 |
0 |
|
iii. Account net income |
-2,041 |
-343 |
|
iv. Transfers from account surplus to shareholder account per Section 462(a) of the ICA |
-94 |
-13 |
|
v. Other transfers to/from account surplus |
-140 |
-127 |
|
vi. Account surplus, end of year |
33,172 |
37,985 |
|
vii. Total account (Liabilities and Surplus), start of year |
35,4472 |
38,467 |
|
viii. Total account (Liabilities and Surplus), end of year |
33,172 |
37,985 |
|
ix. Policyholder dividends (excluding experience rating refunds) |
||
|
2,081 |
845 |
|
0 |
0 |
|
0 |
0 |
|
2,081 |
845 |
|
x. Transfers from account surplus to shareholder account per Section 462(a) of the ICA, if included in Net Income |
0 |
0 |
|
xi. Calculation of Section 462(a) transfers to demonstrate compliance with Section 461 of the ICA |
0 |
0 |
For fiscal year 2024, $2 policy dividends were paid to policyholders. In aggregate, approximately 77% was due to investment income and 23% due to insurance factors. The transfer to the non-par account is 10% of the total distributable earnings, which will be made in 2025, is $231 thousand.
The current year and since inception annual dividend scale interest rate, total participating account investment rate of return and total participating surplus investment rate of return are shown below. Transactional costs are included in the calculation of the rates of return. The investment expenses are approximately 0.01% of investment assets.
Current year |
Since inception |
10 |
20 |
|
|---|---|---|---|---|
|
Dividend scale interest rate |
6.25% |
6.00% |
n/a |
n/a |
|
Participating account investment rate of return |
2.76% |
2.00% |
n/a |
n/a |
|
Participating surplus investment rate of return |
3.78% |
2.98% |
n/a |
n/a |
The investment portfolio’s actual and target asset mix is as follows:
Asset class |
Permitted range |
Target mix |
Actual mix |
|
|---|---|---|---|---|
|
Fixed Income |
Short Term Government & Corporate Bonds Commercial Mortgages Private Placement |
30% – 70% |
50.0% |
53.7% |
|
Non Fixed Income |
Equity Commercial Real Estate |
0% – 50% |
27.5% 22.5% |
23.9% 22.4% |
|
Total |
100% |
100% |
Includes best estimate liability and risk adjustment under IFRS 17 for 2024 number.
Beginning balance does not equal to previous year’s ending balance due to the IFRS 17 transition impact.