Long-term with-profits payouts unlikely to rise

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Bonus payouts on long-term with-profits policies are unlikely to increase despite stock market impro...

Bonus payouts on long-term with-profits policies are unlikely to increase despite stock market improvements, the Actuarial Profession has warned. The body believes bonuses will continue to reduce from past levels over the next few years, with this year's precise level depending on the extent to which funds have been exposed to asset classes that performed strongly over 2005. Nigel Masters, chairman of the Actuarial Profession's Life Board, said: "While gilts also performed well over 2005, those funds that were largely invested in gilts or other fixed interest stocks are not expected to d...