With-profit exit cuts extended

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Friends Provident and L&G have joined Norwich Union in making reductions to exit values on their with-profit funds to combat volatile market conditions.

The number of Friends Provident policies where a market value reduction (MVR) would apply is around 250,000 (mainly pensions policies) out of 1.3 million with-profit policies in force at the end of May 2008. Where MVRs do apply, they will range from 5% to 14% on claims made from October 21 2008. However, payments will not be reduced where a policy guarantees that an MVR will not apply on a particular date, on death or due to regular withdrawals. The main policy years affected are 1999 and 2000 although for some older policies (those in Pensions Series 1), where there is a guaranteed bon...

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