Pru not cutting with-profits final bonuses

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...