NU to lower payouts on with-profits

Maturity payouts on the majority of Norwich Union's conventional with-profits business are to fall b...

Maturity payouts on the majority of Norwich Union's conventional with-profits business are to fall by between 5% and 10%. The group said while asset shares have increased as a result of rising stock markets throughout 2003, most maturing policy values are still higher than individual asset shares and payouts need to be lowered to bring them into line. During 2003, the investment return on the CGNU with-profit fund was 11.5% before tax, compared to -8.6% in 2002. The two years prior to 2002 also saw negative returns. Over the past year, Norwich Union has paid an average of 110% of the as...