Aviva has added £1.45bn in bonuses to its with-profits policies after its main With-Profit fund grew 12% over 2010.
Final bonus rates for bond investors have increased on average by 6% while market value reductions (MVRs) have fallen by an average of 4% over the past year.
Final bonus rates for unitised life and pension policies have also been increased by an average of 6%, and regular bonuses for new business bonds remains at 2.75%. For new pensions, the regular bonus rate has been held at 3.25%.
"Aviva's with-profits investors have enjoyed good returns over 2010 and our funds continue to deliver steady returns for cautious investors," says David Barral, chief operating officer at Aviva.
"We have increased unitised final bonus rates, reduced MVRs and a 10-year bond with the no-MVR Guarantee gives an annual return of 3.9%, outperforming average savings accounts.
"This is impressive when you consider we have been through two bear markets in the last decade with the FTSE 100 returning 2.9% annually over the same period."
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