NU cuts with-profits bonus rates

Norwich Union has cut the final bonus rate on its with-profits policies, citing difficult investment ...

Norwich Union has cut the final bonus rate on its with-profits policies, citing difficult investment conditions since the start of the year. Payouts on unitised policies will be cut by around 7.5%, while payouts on conventional business will be reduced by around 5%, and up to 10% in some cases. NU’s chief actuary John Lister said: “We have reduced final bonus rates because equity markets, commercial property and corporate bonds have fallen significantly in value since the beginning of the year. “We are taking responsible action to reflect the market movements over the past nine months....