HONG KONG - The Hong Kong Mortgage Corporation’s annuity plan attracted HK$4.94 billion in subscriptions, less than half the cap amount of HK$10 billion, HKMC said.
Launched on July 5, the HKMC annuity scheme is an immediate guaranteed fixed annuity product in a bid to provide additional retirement financial-planning options to people 65 or older as well as promote the local annuities market. It set a sale ceiling at HK$10 billion for the first tranche with risk management in mind rather than a sales target, according to a statement by HKMC.
“We are satisfied with the overall outcome of the launch of the plan,” said Edmond Lau Ying-pan, executive director and chief executive officer of HKMC Annuity Ltd. The subscription total, from 9,410 people, was “within our expectations.”
The investment threshold ranges from HK$50,000 to HK$1 million. Over 30 percent of subscribers intended to invest the highest amount.
“As life annuities are relatively new long-term insurance products, the public will require more time to comprehend the concepts and features,” Lau said. “We will continue to implement and strengthen the promotional work in order to increase the public understanding about life annuities and develop the local annuities market.”
The local annuities market doubled to HK$7.7 billion in 2017 compared with HK$3.4 billion in 2016.