Life insurance funds.
The life insurance funds represent the accumulated savings and contributions of policyholders.
They are held against the life insurance companies’ liabilities to pay future claims. The amounts of the funds are increased year by year by premiums paid by policyholders and investment income received , less payments made to policyholders, management expenses (including commission), taxation and transfers to shareholders’ funds (qv), where appropriate.
It is common practise to credit to the life insurance funds all or part of any capital appreciation in the value of the assets.

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