Aviva has cut its market value reduction (MVR) rates on all of its unitised with-profits funds.
The changes, which take effect from today, mean some customer now face no MVR, though others still face a penalty of up to 18% for early withdrawals.
Aviva says improvements in stock market performance have led to the reductions, though it stresses stock markets are still far from their 2007 peak.
Customers who invested in 1991 and 2003 will face an average MVR of 0%, while those investing in 2000 face an average penalty of 18%.
David Barral, marketing director at Aviva, says: "We have been monitoring MVR levels on a weekly basis and the sustained improvement in the overall value of the with-profit funds means we are pleased to reduce MVR rates from 19 October 2009."
Aviva says it will continue to monitor and revise MVRs when appropriate.
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