Hi, Can anyone please confirm what exactly is shareholder transfer ? I am confused that is it a form of profit (part of surplus) or bonuses or what ? How do we usually calculate Shareholder transfer and why does it say that "asset share for without profit contracts does not include a deduction for shareholders transfer" ? Please help
Hi Mahima A common way to calculate shareholder transfers is to split the surplus on a 90/10 basis, ie 90% to policyholders in the form of bonuses and 10% to shareholders as shareholder transfers. There are no bonuses and so no shareholder transfers in this way for without-profits business. If the asset share is bigger than the payout then the shareholders have made a profit. Best wishes Mark
