Friends cuts final bonuses

Friends Provident has cut final bonus rates across most of its with-profits policies to reflect loss...

Friends Provident has cut final bonus rates across most of its with-profits policies to reflect losses over the first half of the year. The gross investment return on the group's with-profits fund was -7.5% over the first six months of 2008, meaning final payments are lower compared to January. Regular bonuses largely remain unchanged. On a 10-year unitised with-profits bond, for example, the final bonus rate has dropped from 50% to 25%.