With-profits investment

Great news for around 1 million with-profits policies

In February 2008 I was delighted to announce that over the next three years around 1 million with–profits policies would receive special bonuses.

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 means we don'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.

The changes to the funds’ management are supported by the With–Profits Committee. This committee includes a majority of independent members to ensure our policyholders’ interests are represented. It is important to know that the changes to the funds do not reduce the potential for strong investment returns in the future.

We wrote to all eligible customers in March and April 2008 with more information about the special bonuses.

Mark Hodges
Chief Executive
Aviva UK

* Each special bonus is added to the value of the eligible investment on the qualification date, and that value includes any special bonuses that have already been added. Therefore, the amount of special bonus added is ‘compounded’.