Stan Life gives £800m with-profits bonus boost

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Standard Life will add about £800m of bonuses to with-profits plans this year.

The move follows increases in plan values over the past year, despite volatile equity markets. For example, a £10,000 investment in a with-profits bond on 1 February 2003 would have grown in value from £14,099 on 1 February 2007 to a cash-in value today of £15,833. Bonus rates on unitised with-profits will rise 0.5% to 2.5% a year for with-profits bonds and 0.5% to 2% for other life plans exempt from a 3% unit price growth guarantee. Rates for unitised with-profits pension plans will rise 0.5% to 2.5% a year except where a 4% unit price growth guarantee applies. However, annual bonuses...

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