Norwich Union has conducted a mid-year review of its with-profits bonus rates and maturity payouts.
Norwich Union has conducted a mid-year review of its with-profits bonus rates and maturity payouts. As a result of the review the following with-profit bonus rates are to be increased from 1 July 2005:
- CGNU & CULAC with-profit bond investments made prior to 10/98 - regular bonus rates increased from 2.50% to 3.25%
- CGNU & CULAC with-profit pension policies prior to 10/1998 - regular bonus rate increased from 3% to 3.5%
- Conventional endowment policies – bonus on bonus rate increased from 1% to 2% (CGNU) and 0.5% to 1.5% (CULAC)
These increases will mean higher bonus rates for more than 600,000 with-profit policyholders.
All other with-profit bonus rates remain unchanged. There are no changes to the value of maturity payouts or the current levels of Market Value Reductions (MVRs).
Commenting on the changes, chief actuary, John Lister, said: "The stock market has been relatively stable over the first half of the year and as a result we have been able to maintain payouts at current levels. In the stronger CGNU & CULAC funds we have been able to increase regular bonuses for some longer-term policies, recognising the importance of regular bonuses to bondholders in particular.
"We do not expect to make any further changes to bonus rates or maturity payouts until we review our with-profits portfolio again at the end of the year."
-ends-
Press office contacts:
James Evans 01904 452791 Out of hours 07800 699525
Louise Soulsby 01904 452617 Out of hours 07800 699526
David Gwyer 01904 452828 Out of hours 07800 699508
Rob Pell 01904 452659 Out of hours 07800 699563
Notes to editors
- Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% 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 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
- Future bonus rates are not guaranteed and may vary, as they depend on profits not yet 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. Full written terms and conditions of Norwich Union products are available on request. Norwich Union is authorised and regulated by the Financial Services Authority and advises on its own products.