Poor conditions prompt Norwich Union to reduce final bonus rates

Norwich Union is reducing final bonus rates on its with-profits range as a result of poor investment...

Norwich Union is reducing final bonus rates on its with-profits range as a result of poor investment conditions since the start of 2008. Payouts on unitised policies will reduce by around 7.5% and up to 1% on conventional business, with a 5% average drop, as a result. Chief actuary John Lister highlighted significant falls in value across equity markets, commercial property and corporate bonds this year. "We are taking responsible action to reflect the market movements over the past nine months," he added. "We need to ensure that those policyholders who leave the fund do not take mo...