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Special Bonus

What is it and when was it paid?

If you were invested in our CGNU Life or CULAC with–profits funds (excluding stakeholder pensions and Provident Mutual policies) on 1 January 2008, then you qualified to receive the first of three special bonuses.

By changing the way we managed these with-profit funds we were able to reduce the investment risk. This meant we didn't have to set aside so much money to cover these risks, allowing us to pay the surplus to eligible customers as a special bonus.

Three special bonus payments were added to eligible policies in 2008, 2009 and 2010.

By January 2010 the total added to eligible policies over three years was around 10.7%.

Each special bonus was added to the value of the eligible investment on the qualification date. The value included any special bonuses that had already been added. Therefore, the amount of special bonus added was ‘compounded’.

Who was eligible?

You were eligible for the first special bonus if:

  • Your with-profits policy was invested in the CGNU Life or CULAC with-profits funds (excluding stakeholder pensions and Provident Mutual policies) and
  • Your with-profits policy was invested in these funds on 1 January 2008 (policies commencing on or after 1 January 2008 were not eligible).

You were eligible for the second and third special bonuses if:

  • You were eligible for the first special bonus and
  • Your with-profits policy was still invested in the CGNU Life or CULAC With-Profits Funds (excluding stakeholder pensions and Provident Mutual policies) on the following qualifying dates:
    • 2nd special bonus qualification date - 1 January 2009
    • 3rd special bonus qualification date - 1 January 2010

You would not have been eligible for special bonuses if:

  • You invested in these with-profits funds on or after 1 January 2008.
  • You had a Provident Mutual policy.
  • You were invested in any of our other with-profits funds, including Norwich Union Life & Pensions (NUL&P) and Provident Mutual.
  • Your policy ended before 1 January 2008 for any reason (for example, cancellation, maturity or death claim).
  • You switched your investment out of the with-profits funds before 1 January 2008.
  • Your policy was a stakeholder pension.
  • You’re invested in a fund that isn’t with-profits (for example, the Aviva Property Fund).
  • Your policy was a term assurance or critical illness policy.
  • Your policy was a general insurance policy, like a car insurance, home insurance or pet insurance policy.

Why didn’t you pay special bonuses to every policyholder?

The special bonus was paid from excess surplus money that built up in two of our with-profits funds - the CGNU Life and CULAC with-profits funds. The principles and practices that govern the payment of special bonuses state that only policyholders invested in these funds were entitled to receive the special bonus payment.

Important to know

  • The special bonuses were added to eligible policies and increased the policy value - they were not paid in cash.
  • The size of the bonus eligible policyholders received depended on the value of their with-profits investment in the funds on the qualifying dates.
  • New investments including increases to regular premiums, additional single premiums or switches made into the relevant funds on or after 1 January 2008 do not qualify for a special bonus.

WC06092 05/2013