Article date: 28 June 2005
Norwich Union has conducted a mid-year review ofits with-profits bonus rates and maturity payouts. As a result ofthe review the following with-profit bonus rates are to beincreased from 1 July 2005:
- CGNU & CULAC with-profit bond investments made prior to10/98 - 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 rateincreased from 1% to 2% (CGNU) and 0.5% to 1.5% (CULAC)
These increases will mean higher bonus rates formore than 600,000 with-profit policyholders.
All other with-profit bonus rates remainunchanged. There are no changes to the value of maturity payouts orthe current levels of Market Value Reductions (MVRs).
Commenting on the changes, chief actuary, JohnLister, said: "The stock market has been relatively stable over thefirst half of the year and as a result we have been able tomaintain payouts at current levels. In the stronger CGNU &CULAC funds we have been able to increase regular bonuses for somelonger-term policies, recognising the importance of regular bonusesto bondholders in particular.
"We do not expect to make any further changes tobonus rates or maturity payouts until we review our with-profitsportfolio again at the end of the year."
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'slargest provider of life, pensions and investment products andone of the leading IFA providers. IFAs provide around 75% of thecompany's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco PersonalFinance and The Royal Bank of Scotland Group. NorwichUnion’s news releases and a selection of images areavailable from Aviva's internet press centre at www.aviva.com/media
- Future bonus rates are not guaranteed and may vary, as theydepend on profits not yet earned. Past performance is not aguide to the future. The value of investment linked funds can godown as well as up and is not guaranteed. Full written terms andconditions of Norwich Union products are available on request.Norwich Union is authorised and regulated by the FinancialServices Authority and advises on its own products.