Core Insights - Hong Kong savings and dividend insurance has become a popular choice for mainland investors, with many seeking to understand the structure of guaranteed and non-guaranteed returns [1][8] - The article emphasizes the importance of understanding the components of dividend returns, which include reversionary bonuses and terminal bonuses, both of which are non-guaranteed [3][4] Summary by Sections Dividend Composition - The dividend returns from Hong Kong savings insurance consist of two parts: reversionary bonuses and terminal bonuses [3] - Reversionary bonuses are non-guaranteed and can be cashed out or accumulated within the policy, while terminal bonuses are updated periodically and are not permanently attached to the policy [3] Understanding "Non-Guaranteed" Returns - The term "non-guaranteed" does not imply that returns are unreliable; rather, it indicates potential variability in future returns [4][5] - The Hong Kong Insurance Authority mandates that insurance companies disclose their dividend realization rates annually, allowing policyholders to assess the reliability of non-guaranteed returns [4] Dividend Smoothing Mechanism - Hong Kong insurance companies employ a smoothing mechanism for dividends, which helps to stabilize returns over economic cycles by saving excess returns during profitable years for distribution in less favorable times [5][6] - Companies like 万通保险 distribute at least 90% of their surplus to policyholders, with the remainder retained by the company [5] Investment Strategies - The allocation of assets in the Hong Kong insurance market is flexible, with no strict limits on the proportion of equity and fixed-income assets [5][6] - 万通保险 collaborates with global asset management experts like Barings, enhancing its investment capabilities in fixed-income assets [5][6] Financial Performance - 万通保险 has maintained a strong financial rating of "A-" from Fitch for seven consecutive years, with solvency ratios consistently between 200% and 300%, indicating robust risk management [6] Market Trends - The mainland insurance market is transitioning, with decreasing guaranteed rates and increasing non-guaranteed components, making Hong Kong's dividend insurance more attractive due to its higher expected returns and flexibility [8] - The design of Hong Kong's savings insurance, combining guaranteed and non-guaranteed elements, meets investors' needs for stable returns while offering potential for higher returns [8]