Norwich Union announces regular bonus rates for its offshore with-profit policies for 2005. Regular bonus rates for the current range of offshore investment products will be maintained at 2004 levels until further notice.
Norwich Union announces regular bonus rates for its offshore with-profit policies for 2005. Regular bonus rates for the current range of offshore investment products will be maintained at 2004 levels until further notice. With effect from 1 January 2005, the rates are:
- Sterling 5.00%
- US Dollar 4.75%
- Euro 4.75%
These are gross bonus rates before the deduction of a management charge of 1% for life policies and 1.25% for capital redemption policies.
Final bonus rates have also been declared for business written in 2005 and previous years (see Notes to Editors for details of final bonuses). Market Value Reductions are not currently applying to any of Norwich Union International’s with-profit policies.
Commenting on the fact that this is the second year in a row where the regular bonus rates have remained unchanged, Mike Urmston, chief actuary of Norwich Union Life, said: "Our with-profit funds have seen a second year of positive investment returns which has resulted in an increase in the underlying value of customers’ policies. Policies maturing continue to pay competitive returns and compare well to other forms of investments.
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For further information:
Norwich Union International Mike Gogan 00 353 1 802 8415
Financial Dynamics Christine Wood 020 7269 7253
Notes to editors
- Future bonus rates are not guaranteed and may vary, as they depend on profits yet to be earned. Past performance is not a guide to the future. The value of investment linked funds can go down as well as up and is not guaranteed. We may apply a market value reduction on encashments (except on some maturity or death), which will reduce what you get back from the unitised with-profit fund. Market value reductions apply when the quoted value of units is above the policyholder’s ‘fair share’ of the fund - known as the asset share.
- The following Final Bonus rates will apply from 1 January 2005 to all offshore with-profit business written in 2003:
- Sterling 8%
- US Dollar 7.5%
- Euro 6%
- The following Final Bonus rates will apply from 1 January 2005 to all offshore with-profit business written in 2004:
- Sterling 3%
- US Dollar 2.75%
- Euro 2.75%
- The following Final Bonus rates will apply from 1 January 2005 to all offshore with-profit business written in 2005:
- Sterling 1.75%
- US Dollar 1.75%
- Euro 1.75%
Important notes:
- Full written terms and conditions of Norwich Union International products are available on request. Norwich Union is authorised and regulated by the Financial Services Authority and only advises on its own products.
- Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading providers to Financial Advisers.
- Financial Advisers provide around 75% of the company’s long-term savings business. Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva’s internet press centre at www.aviva.com/media