Norwich Union is announcing good news for people investing in its with-profit fund in 2006.
Norwich Union is announcing good news for people investing in its with-profit fund in 2006.
Bonus rates for pension investors have been raised and bonus rates for bond investors have been maintained at their competitive rate. The regular bonus rates payable on new unitised with-profits policies in 2006 will be as follows until further notice.
Pension policies 4.50% (increased from 4%)
Stakeholder pensions 4% (increased from 3.50%)
Life and investment policies 4.25%*
Offshore bonds 5% (sterling) and 4.75% (euro/dollar) *
*(plus a first year 1.75% final bonus)
These are explicit charged policies, with the bonus rate being expressed as a gross rate before deduction of the 1% annual fund management charge.
Chief actuary John Lister, said: ”These changes are good news for investors in our with-profits fund, and underline the benefits of investing in a fund with a high equity backing ratio. The strength of the fund allows us to invest heavily in shares and property giving higher long-term returns. It also allows us to give valuable and attractive guarantees to our With Profit customers. The rates announced today demonstrate our ongoing commitment to marketing with profit products.”
Norwich Union confirms that it will be announcing its with-profits regular bonus rates and payout values for existing policyholders on Tuesday 17 January 2006.
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Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
James Evans 01904 452791 Out of hours 07800 699525
Rob Pell 01904 452659 Out of hours 07800 699563
Cheryl Cox 01904 452617 Out of hours 07800 695275
Notes to editors:
Future bonus rates are not guaranteed and may vary. Past performance is not a guide to the future.
About Norwich Union
Norwich Union is one of the UK's biggest insurers. It is a leading provider of life and pensions products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS 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.