PNB MetLife Insurance declares 21% higher bonus for 5.82 lakh policyholders

PNB MetLife has declared a bonus of ₹930 crore for eligible participating policyholders. This will benefit around 5.82 lakh customers, the insurance company said.

This marks 21% increase from the previous year, with an additional ₹161.40 crore contributing to this year's bonus amount.

Sanjay Kumar, Chief Investment Officer of PNB MetLife, emphasised the long-term benefits of participating insurance products, stating, "Life insurance policies are designed for the long term, and participating insurance products allow us to reward customers throughout the policy term."

This announcement follows recent similar moves in the insurance sector, where Shriram Life Insurance declared a bonus of ₹201 crore, up 35% year-on-year, benefiting 3.8 lakh policyholders.

Canara HSBC Life Insurance also announced a customer bonus of ₹232 crore for over 2.18 lakh policyholders earlier this week.

Last month, Max Life Insurance announced its highest-ever participating (PAR) bonus of ₹1,826 crore for eligible policyholders in the financial year 2023-24.

Kotak Mahindra Life Insurance also announced a bonus of ₹1,007 crore for over 7 lakh eligible policyholders, while HDFC Life declared its highest-ever bonus of ₹3,722 crore for more than 22.23 lakh policyholders.

Additionally, Bajaj Allianz Life declared its all-time high bonus of ₹1,383 crore for over 11.66 lakh policyholders.

Life insurance bonuses represent a share of the profits made by insurers, distributed among policyholders as either reversionary bonuses added to the policy's sum assured or terminal bonuses paid out under specific conditions.