The following is an extract from the DHW textbook:

"Exercise 6.8

Consider an annual premium with-profit whole life insurance

issued to a select life aged exactly 40. The basic sum insured is $200 000

payable at the end of the month of death, and the premium term is 25 years.

Assume a ** compound reversionary bonus** of 1.5% per year, vesting on each

policy anniversary, initial expenses of 60% of the annual premium, renewal

expenses of 2.5% of all premiums after the first, plus per policy expenses

(incurred when a premium is payable) of $5 at the beginning of the first year,

increasing by 6% per year compound at the beginning of each subsequent year.

Calculate the annual premium."

Please could someone explain what a compound reversionary bonus is and how it will be treated in this question.