LV= £4bn With-profits fund returns halve in 2007

LV='s announcement is the latest in a series of disappointing returns from other with-profits funds for 2007 including 5% from Scottish Widows and 6.5% from Norwich Union. These figures are approximately half the returns recorded in 2006. However, following smoothing, LV= is able to offer an effective return over the year of 9.9% for a 10-year life policy and 12.5% for a 25-year life policy. The group also announced an estimated £100m bonus will be added to with-profits policies and With-profits pension annuity top-up bonus rates have been increased. It informed policyholders a £21,...