Sberbank offers its clients new strategies for investment life insurance

Dec 14, 2018
  • Three new strategies for classic ILI were developed for different market scenarios.
  • Coupon ILI now has updated asset baskets and coupon payment conditions.
  • Updated ILI programmes are available to premium and VIP clients of the bank via the Sberbank Premier and Sberbank First channels.

14 December 2018, Moscow – Sberbank has modified its investment life insurance (ILI) product line for premium clients. Classic ILI now includes the New Technology 3.0, Global Bond Fund 3.0 and Index of Economic Cycles strategies. Coupon ILI now has updated asset baskets and significantly revised coupon payment conditions.

Senior Vice President and Head of the Wealth Management Block of Sberbank Natalya Alymova:

“The new strategies for investment life insurance programmes were developed based on the research on clients’ requests via the Sberbank First and Sberbank Premier channels. The updated programmes take into account the current needs and risk profiles of clients and are aimed at different market scenarios. The fund with tech company stocks is aimed at development growth, the bond fund – at handling market instability, and profit from coupon ILI is less dependent on the implementation of one or another market scenario.”

Global Bond Fund 3.0 consists of the sovereign bonds of more than 50 countries, including the USA, Germany and other countries of the EU, as well as bonds of the largest global companies, including Goldman Sachs, Citigroup, Delta Air Lines, Amazon, eBay and many others. More than 85% of the bonds have high credit quality, which increases the strategy’s reliability. The wide diversification of securities allows clients to participate in profit making from bonds of different sectors of the economy.

New Technology 3.0 consists of stocks of 30 international companies that specialise in creating innovative products in different areas. It includes such technological leaders as Canon, Microsoft, Oracle, Motorola Solutions, Harris Corp, Fujifilm Holdings and others. By choosing this strategy, clients invest in a fast growing sector of the economy with international diversification.

The Index of Economic Cycles fund allows clients to invest in stocks and bonds whose proportion constantly changes depending on the stage of the economic cycle and inflation pressure level that corresponds to it. This fund differs due to its flexibility and capability to adapt to the current market conditions.

The new asset basket of the coupon ILI for the Sberbank Premier channel includes stocks of Mitsubishi, Hyundai, Infosys, Baidu, and Bank of China. The maximum coupon rate is 13% for rouble policies and 7% for US dollar policies.

The new asset basket of the coupon ILI for Sberbank First now includes stocks of American companies such as General Electric, Lockheed Martin, Verizon, and Broadcom. The maximum investment coupon rate is 12% for rouble policies and 6.5% for US dollar policies.

The investment coupon payment conditions have changed. Its rate is not fixed and depends on the number of companies whose stocks are higher than their initial price: the more companies there are, the higher the coupon rate is.

Senior Vice President and Head of the Wealth Management Block of Sberbank Natalya Alymova:

“Constant analysis of clients’ needs and improvement of the investment life insurance programmes is one of the priorities of Sberbank Life Insurance in 2019. The ILI product line will be significantly and qualitatively modified, and underlying assets of the strategies will be reviewed at least once every six months. Our goal is to constantly improve investment life insurance to make them correspondent to the changing market conditions, and flexible, transparent and potentially more beneficial for clients.”