With-profits bonuses recovering

Announcements from Britannic and prudential show stability in rates for first time in years

With-profits bond bonuses appear to have hit the bottom of their cycle, with announcements from Britannic and Prudential revealing signs of recovery. Last week, the Pru said investors in the Prudence Bond would receive a 3.25% headline annual bonus rate on their with-profits policies for 2004. This is unchanged from 2003 and marks a stability in rates for the first time in years. The bonus rates applicable to Prudential's full range of with-profits policies will be announced on 24 February, along with the group's full-year results. In December, Britannic Assurance said investment condi...