Friends Prov cuts bonuses

Payouts on with profits policies maturing in 2004 are cut by an average of 6%, the firm says. Despite a massive rebound in the stock market since the last review in August 2003, FP says it must continue cutting annual and terminal bonuses because payouts are still too high relative to the cumulative investment losses suffered since 2000. "Our expectation is that investment returns in the future will continue at lower levels than those experienced in the last two decades and, with existing guaranteed benefits also being generally at high levels, regular bonus rates need to come down," ...