NU slashes with-profits final bonus rates 7.5%

The firm, which is also reducing payouts on conventional business by up to 10%, blames poor investment conditions, particularly in the commercial property and corporate bond markets. It affects policyholders in each of its four with-profits vehicles - CGNU, CULAC, Norwich Union Life and Pensions (NULAP), and Provident Mutual – and came into effect on 1 September. It also follows a move in May to cut the surrender values across the same funds by up to 9%. Both the CGNU and CULAC with-profits funds saw returns of -7.3% before tax at June 30. The return at end of 2007 was 5.4%. Returns...