NU and Friends Prov report lower with-profit returns

Groups begin bonus season by reporting lower with-profit returns over past year, with equity, bond and property returns all in decline

Friends Provident and Norwich Union have started off the 2008 bonus season by reporting lower with-profits returns after a period of equity market volatility. Over the year, the gross investment return on Friends Provident's main series with-profits fund is estimated at 5%, compared to 8% for 2006. Despite this, the group said final bonus rates mainly increased, and most regular payments stayed unchanged. Regular bonuses have stayed at 0.75% on 10-year unitised with-profit bonds and 4% on 15-year unitised personal pension plans, for example. Chief actuary Brian Harrison highlighted ...