Aviva has reduced the market value reductions on its with-profits policies.
The changes apply to all Aviva unitised with-profits funds, which were formerly known as CGNU, Culac and Nulap funds, with immediate effect.
The average market value reductions rates now range from 0 to 18 per cent. Aviva previously applied average MVRs of up to 20 per cent.
The firm says the move reflects a sustained improvement in the overall value of the with-profits funds.
Marketing director David Barral says: “We have been monitoring MVR levels on a weekly basis and the sustained improvement in the overall value of the with-profits funds means that we are pleased to reduce market value reduction rates.
“Aviva’s with-profits funds continue to provide investors with attractive returns while protecting them from the extremes of volatile equity markets.”