Friends Provident has managed to raise or hold steady final bonus rates on its with-profits policies as markets start to recover.
The main with-profits fund produced an investment return of 7.5% in the first three quarters of 2010, as the proportion of the fund invested in equities and property increased from 25% to 40% since December 2009.
"Financial markets recovered over the third quarter of 2010, although there is still some uncertainty about the pace and timing of a sustained recovery. To reflect this uncertainty we have been increasing our exposure to equities and property in a phased manner from the tactical low position of 16% at the end of 2008.
"We have largely maintained our holdings of corporate bonds, which also recovered during 2010," the group says.
Regular bonus rates have also been maintained and there have been no MVRs on any with-profits policies since 1 April 2010.
"Thanks to positive returns from virtually all asset classes over the last quarter, payouts for the majority of our policyholders are being increased," says Andy Carr, chief actuary at Friends Provident.
"To illustrate this, the experience of many policyholders will be that the cashable value of their plans will have increased by around 7% since the start of the year," he adds.
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