Norwich Union outlines £1bn with-profits bonus payments

The second year of positive returns in a row unfortunately has not been enough to offset the losses suffered in the bear market. Despite the FTSE ending 2004 at 4,814 points, it remains 2,100 points below its late 1999 peak, NU says. Low interest rates and low inflation mean the long-term outlook for investment returns are lower than in the 1980s and 1990s, but NU still feels its CGNU/CULAC with-profits funds can achieve an average 7% return before tax. Last year’s return on the NULAP with-profits fund was 10.2% pre-tax, with the Provident Mutual fund returning 7.6% pre-tax. The ...