Maturity payouts on NU with-profits set to decline

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 5%-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 still need to be lowered to bring them in line. During 2003, the investment return on the CGNU with-profit fund was 11.5% before tax, compared to -8.6% in 2002 and two further negative return years before that. Over the year, Norwich Union paid an average of 110% of asset share of maturing poli...