Pru not cutting with-profits final bonuses

Professional Adviser
clock

Prudential will not be cutting final bonuses for its with-profits fund, though annual rates will fall by around 0.75%, it has confirmed today.

Policyholders will see the accumulating value of their policies fall by between 6% and 10% as smoothing measures adjust to the market downturn. Around £2.8bn was added to policy values through bonuses in 2008, with total returns of the Prudential with-profits fund at 67.2% over the past ten year. Bonus rates will be set at 3% for with-profits bond and personal pension policies and 2% for annuity customers. Other with-profits providers have been forced to cut their final and annual bonus rates due to the market downturn, despite the smoothing measures used to protect policyholders from...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Low-cost platforms spur one in three UK adults to invest

Low-cost platforms spur one in three UK adults to invest

Trading 212 the main beneficiary

Michael Nelson
clock 12 March 2026 • 2 min read
Understanding the investment appeal of the energy addition

Understanding the investment appeal of the energy addition

Positive change takes time

Tim Humphreys
clock 11 March 2026 • 4 min read
Chaos is not a ladder: Navigating human behaviour at times of market stress

Chaos is not a ladder: Navigating human behaviour at times of market stress

'It is important to maintain perspective'

Sacha Chorley
clock 09 March 2026 • 4 min read