Final payouts on Norwich Union with-profits funds could be down up to 15% on last year, although regular bonus rates have been held on conventional policies.
The group announced final bonus rates have been reduced from 1 January 2009 to bring payouts back in line with asset share subject to smoothing. Of the reduction, up to 10% was announced in September but this figures could now be as high as 15%. However, regular bonus rates have been held on conventional policies. For unitised policies, regular bonuses have been cut by 0.75%. MVRs on the funds have been reduced from 16.2% to 11%. NU said unprecedented market conditions over the past year have affected short term performance. In 2008, the CGNU and CULAC funds were down 11.9% while NULA...
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