Printer Friendly

Insurance giant cuts with-profit bonuses.

An insurance giant has cut bonuses for with-profit policyholders for the fifth time in two years.

Pay-outs on policies will fall by 7pc on average, despite a 14pc rise in the value of the with-profits fund in 2003.

Standard Life blamed the latest cuts on poor stock market performance, despite a rise in share prices during 2003.

With-profits policies are designed to smooth out the peaks and troughs of stock market volatility. Profits made in strong years are kept in reserve to pay investors an annual bonus even when the stock market performs badly. Now an investor paying pounds 50 a month into a 25-year endowment policy will see the final maturity value fall from pounds 69,386 to pounds 62,603
COPYRIGHT 2004 MGN Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Features
Publication:The Journal (Newcastle, England)
Date:Jan 30, 2004
Words:122
Previous Article:Shareholders fail to block payout.
Next Article:Astra Zeneca in pledge.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters