Abbey drops annual bonuses despite its with-profits returns

Abbey is declaring no annual bonuses from its with-profits products for 2005, except for policies wi...

Abbey is declaring no annual bonuses from its with-profits products for 2005, except for policies with guaranteed bonuses and on with-profits annuities. The announcement comes despite gross investment returns of 12.2% on the Scottish Provident fund and 12.3% on both the Abbey National Life (ANL) and Scottish Mutual with-profits funds over 2005, according to the group. However, final bonus rates and MVRs have improved on several products. MVRs on Scottish Mutual and ANL with-profits bonds have been set to zero if the MVR at this time last year was 6% or less. Where rates were higher th...