Guaranteed Return

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Guaranteed Return

A return that a company is required to pay. Bonds and coupons have guaranteed returns because the issuing company agrees to pay coupons and guaranteed dividends. This contrasts with non-guaranteed returns, such as the dividends on common stock, which a company may decide not to pay. A guaranteed return does not necessarily mean that the company will pay (the company may, for example, default or go bankrupt). However, under some circumstances, the holders of securities with guaranteed returns may force the liquidation of the company.
References in periodicals archive ?
Consider the actual guaranteed returns and resale opportunities and the forecasted projections promoted which may not eventuate and, as an unregulated investment, carry a high degree of risk.
Dec 8, 2014 /PRNewswire/ -- Guaranteed Returns, a nearly three-decade-old pharmaceutical return company, has announced the appointment of Paul Nick as President and Chief Executive Officer of the business that is an acclaimed leader in its industry.
Aegon Religare Life Insurance announced the introduction of a new on-line guaranteed returns product, iGaurantee Insurance Plan , with a short, six-year tenure followed by a six-year pay out period.
Jeevan stha offers a combination of insurance and guaranteed returns to the policy holders, said a press release issued by LIC International.
The policyholder is able to lock the guaranteed returns for all three premiums paid over the 12- year policy term," says Kshitij Jain, managing director and CEO, ING Life Insurance.
MUNICH, Germany (Reuters) - 's chief executive has warned that the industry will not be able to live forever with low interest rates that limit insurers' abilities to make money on capital investments while having to pay out guaranteed returns to customers.
The guaranteed returns are further increased if the plan value on the fifth plan anniversary has grown by at least 10 per cent compared to its original investment amount.
The firm, which is owned by bank Lloyds TSB, has been accused of encouraging the schemes to give up guaranteed returns and protections against the risk of pensioners living for longer than expected.
Although insurers offer several options, financial experts recommend two products: variable universal life insurance, which combines life insurance with a policyholder-driven investment component; and traditional whole life insurance, which offers guaranteed returns and fixed premium payments.
It would be a brave chief executive who escalated costs by increasing prizemoney without any guaranteed returns that supposedly would be forthcoming through better-quality racing, as evidenced on the racecourse, cited by Paul Dixon.
And while the MetLife building's price will squeeze its cap rate tighter than the rush hour 4,5, and 6 subways that run below it, its enormous cash flow and stability assures guaranteed returns.
Some investors also are misled with claims of guaranteed returns when variable annuity returns actually are vulnerable to the volatility of the stock market.

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