Royal London and Scottish Life have both declared big cuts in the maturation value of with-profits p...
Royal London and Scottish Life have both declared big cuts in the maturation value of with-profits policies.
The cuts, which represent the biggest falls of all providers which have yet declared, mean that a with-profits endowment policy would have fallen by 15.2% for Royal London policyholders and 18.2% for those with Scottish Life.
David Carrington, sales and marketing director at PolicyPlus, pointed out these companies still offered the highest maturation values.
He said: 'Royal London Group has been able to use its financial strength to keep bonuses up over the years. This cut, although significant, still leaves annual returns in the mid teens over a 25 year period.'
However Carrington noted that Scottish Life had made three cuts through the year which, he said, meant that the funds were behaving more like unitised products.
He said the acquisition of Scottish Life by Royal London and the way that rewards were paid may have contributed to the size of cuts.
Joined as head of strategy, multi asset, in June
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