Core Viewpoint - The recent disclosure of dividend realization rates for participating insurance products by various insurance companies shows a significant improvement in 2024 compared to 2023, with many products exceeding a realization rate of 100% [2][3][4] Group 1: Dividend Realization Rates - Most participating insurance products have seen an increase in dividend realization rates compared to 2023, which were previously concentrated between 25%-50% [2][4] - Major companies like Ping An Life, Xinhua Insurance, and others have reported multiple products with realization rates exceeding 100% for 2024 [3][4] - The average realization rate across over a thousand products from more than 20 insurance companies is reported to be 49% for 2023 [4] Group 2: Factors Influencing Improvement - The improvement in dividend realization rates is attributed to a recovery in investment returns for insurance funds in 2024, driven by policy adjustments that have positively impacted the capital market [5] - Regulatory guidance on dividend levels in 2023 contributed to lower realization rates, but the asset-side improvements in 2024 have led companies to prioritize higher dividend distributions for existing products [5] Group 3: Sources of Dividends - Dividends from participating insurance products are derived from surplus earnings that exceed pricing assumptions, primarily from investment returns, mortality rates, and operational costs [6][7] - The realization rate reflects past performance and does not guarantee future dividends, emphasizing the importance of consistent high realization rates over time [7] Group 4: Regulatory Environment - The introduction of regulatory guidelines in June 2025 aims to prevent irrational competition and ensure that dividend levels are aligned with actual investment returns and financial health of the insurance accounts [9][10] - The guidelines set limits on dividend levels based on various financial metrics to protect consumer interests and promote transparency in dividend distribution [10] Group 5: Consumer Considerations - Consumers are advised to focus on the long-term investment capabilities of insurance companies, historical dividend realization rates, product design transparency, and alignment with personal financial needs when selecting participating insurance products [11]