With-profits bonuses may be cut again, warns CM

A statement issued by the Bristol-based life insurer says terminal bonuses have been reintroduced on Clerical’s new with-profits bonds as part of the £569m 2003 payout and the with-profits income fund will see unchanged bonus rates of 4.5%. However, bonds will see regular bonuses cut to 1.5% while pension policy regular bonuses are being cut to 2%. With-profits bonds bought between 1998 and 2001 also still carry much higher average MVRs than life and pensions policies, although the firm point out MVRs and surrender values have improved, albeit the amount received will depend on durati...