Corporate Bond Portfolio and Investment Analysis
Risk Discount Rate and Risk Premium
As at 30 Nov 2010
As at 30 Jun 2023
Risk Discount
Long-term
10-year
Risk
Risk Discount
Long-term
10-year
Rates
Premium
Rates
Risk
Premium
%
Govt Bonds
Govt Bonds
Australia
8.75
5.65
3.10
7.43
3.30
4.13
Mainland China
10.00
3.74
6.26
9.67
3.70
5.97
Hong Kong
8.00
3.53
4.47
7.45
3.00
4.45
Indonesia
15.00
7.90
7.10
13.13
7.50
5.63
South Korea
10.50
4.82
5.68
8.86
3.00
5.86
Malaysia
9.00
4.45
4.55
8.86
4.50
4.36
New Zealand
9.00
6.13
2.87
7.39
3.30
4.09
Philippines
13.00
6.00
7.00
12.10
5.80
6.30
Singapore
7.75
2.93
4.82
7.22
2.90
4.32
Sri Lanka (1)
n/a
n/a
n/a
21.00
10.00
11.00
Taiwan (China)
8.00
1.73
6.27
7.64
1.50
6.14
Thailand
9.50
3.87
5.63
8.00
3.20
4.80
Vietnam
16.00
10.20
5.80
9.55
4.00
5.55
Weighted Average (2)
8.95
3.85
5.10
8.30
3.37
4.93
Notes: For Tata AIA Life, the Group uses the Indian EV methodology as defined in Actuarial Practice Standard 10 issued by the Institute of Actuaries of India for determining its EV and VONB. This methodology uses investment returns and risk discount rates that reflect the
market-derived government bond yield curve. The above disclosure information is therefore not provided for Tata AIA Life
(1)
(2)
Sri Lanka is included since the acquisition completion date of 5 Dec 2012
Weighted average by VIF contribution
AIA
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