Both Standard Life and Clerical Medical have this morning announced further cuts to bonus rates on their with profits policies, and SL warns members should expect rate cuts to continue.
Scottish Widows says an improvement in the performance of its with-profits funds means the life insurer has cut MVRs and will continue to pay bonus rates of 1% and 1.5% on its unitised flexible investment bond and pension policies.
Standard Life has left bonus payouts on with-profit bonds, homeplans and stakeholder policies unchanged however final bonus rates have been reduced on remaining products.
Scottish Widows has announced further cuts its with-profits policies which sees the payouts on bonds reduced by 0.5%.
Clerical Medical has improved the market value reduction (MVR) on its with-profits funds but may have to cut bonus rates again if the stock market does not produce a sustained recovery.