Axa Sun Life has cut bonuses for its 1.65m with-profits policyholders, with bonuses on bonds cut to 2 per cent for the year to March 2004, from 2.5 per cent the previous year and personal pensions cut to 2.25 per cent from 3 per cent. Bonuses for mortgage endowments with a 3 per cent guarantee remain at that level.
Sun Life Assurance Society bonuses fall to 2.25 per cent from 3 per cent on bonds, to 3 per cent from 3.75 per cent on personal pensions and to 2.25 per cent from 3 per cent on mortgage endowments.
Axa Sun Life chief actuary Peter Shelley says: “The effect of poor performance of the stock markets over the past few years means that several years of increased investment returns would be needed to restore regular bonus rates. This smoothing of bonus rates is to ensure that all our customers are treated fairly.”