The profit that can be paid to shareholders of the insurance company is limited to a maximum of 1/9th of the value of bonuses allocated to participating policyholders. This means for every $9 distributed to policyholders, a maximum of $1 is distributable to shareholders.
If there is any shortfall in the assets needed to meet the guaranteed benefits of policyholders, the shortfall must be met by shareholders. The insurer must pay the guaranteed benefits even if the participating sub-fund performs badly.
Insurers selling participating policies must have an internal policy on the management of the participating fund business which is approved and reviewed regularly by the board of directors.