• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Shareholders transfer

M

Mahima Singla

Active Member
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
 
Mahima Singla said:
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
Click to expand...
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
 
You must log in or register to reply here.
Back
Top