Standard Life cites the need for ‘investment flexibility' as the reason for not increasing the annual bonus rates on with-profits policies, despite a record year for equity-based returns.
Stock market indices such as the Dow Jones Industrial Average reached historic highs last year as markets were pushed forward through investor appetite for risk and a rise in the level of mergers activity. However, the life office says this has not swayed it into returning proportionately more to policyholders, because it is looking to the long-term goal of final bonuses, which contrary to annual bonuses it has decided to increase. “For many types of policy, bonus rates are the mechanism through which all profits returns are delivered to customers," the company says. "After considerin...
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