Article date: 14 December 2005
Norwich Union is announcing good news for people investing inits with-profit fund in 2006.
Bonus rates for pension investors have been raised and bonus ratesfor bond investors have been maintained at their competitive rate.The regular bonus rates payable on new unitised with-profitspolicies 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 bonusrate being expressed as a gross rate before deduction of the 1%annual fund management charge.
Chief actuary John Lister, said: ”These changesare good news for investors in our with-profits fund, and underlinethe benefits of investing in a fund with a high equity backingratio. The strength of the fund allows us to invest heavily inshares and property giving higher long-term returns. It also allowsus to give valuable and attractive guarantees to our With Profitcustomers. The rates announced today demonstrate our ongoingcommitment to marketing with profit products.”
Norwich Union confirms that it will be announcing its with-profitsregular bonus rates and payout values for existing policyholders onTuesday 17 January 2006.
Press office contacts:
David Gwyer 01904 452828 Outof 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 notguaranteed and may vary. Past performance is not a guide to thefuture.
About Norwich Union
Norwich Union is oneof the UK's biggest insurers. It is a leading provider of life andpensions products and one of the largest Financial Adviser (FA)providers. FAs provide over 70% of the company's long-term savingsbusiness in the UK.
Norwich Union has strategic alliances with building societies andother leading UK brand names including CIS and The Royal Bank ofScotland Group. Norwich Union’s news releases and a selectionof images are available from Aviva's internet press centre atwww.aviva.com/media.