Policyholders with a Norwich Union with-profits pension and endowment products will see the value of...
Policyholders with a Norwich Union with-profits pension and endowment products will see the value of their investments fall by about 15% from the same time last year, after the company made its bonus declaration.
A standard £25 per month, 25-year policy from Commercial Union would have been worth £102,306 if surrendered on 1 January, 2001 compared with £86,994 if surrendered now. An equivalent policy from Norwich Union would have fallen from £86,028 to £73,640, or 14.4%.
The regular bonus rate for unitised with-profits pensions policies will be 5.25%, compared with 6.25% announced in August 2001. Savings policies will see bonus rates fall from 5.25% to 4.25%, while the rate for stakeholder policies fell from 5.75% to 4.75%.
The company said the falls were less than the decrease in the stock market, which fell 16% in 2001 and the with-profit fund which fell by 9.6%, and illustrated the strength of smoothing.
Bought plans in 1988 and 1989
To be added to model portfolio service
Launched 25 September