Friends Prov cuts with-profits bonus rates

The firm says gross investment returns on the With-Profits fund were -7.25% for the first six months of 2008, adding the fund would have needed to return 8% to ensure bonus payouts matched January levels. Regular bonus rates remain unchanged. Friends Provident says it is committed to treating its 1.3 million with profits policyholders fairly through smoothed changes to policy payouts to maintain alignment with underlying investment values. Brian Harrison, Friends Provident chief actuary, says: “Bonus rates announced in January of this year reflected investment returns over the whole ter...