In a with-profits bonus rate update today, Aviva says it has reduced with-profit income rates for new business from 3.25 per cent to 2.50 per cent.
Ex-CGNU policies have also been reduced by 0.5 per cent to bring the guarantees on these policies into line with the actual long- term performance of the fund.
Regular rates for unitised policies have been maintained, meaning the new business rate for bonds is 2.75 per cent.
For new pensions the regular bonus rate remains at 3.25 per cent. For offshore bonds, rates have been held at 3.5 per cent Sterling and 3.25 per cent Euro/dollar.
Regular bonus rates for conventional policies, including endowments, have also been maintained at previous levels.
For unitised life and pension policies, final bonus rates have been increased slightly and some market value reductions have been adjusted so that overall payouts have either slightly increased or remained the same.
For conventional life and pensions, including endowments, some final bonus rates have reduced and some have increased.