Axa has increased its regular bonus rates by up to 0.75 per cent on its two with profits funds.
The increase on the Axa Sun Life with profits fund and the Sun Life Assurance with profits fund means investors could see an increase of up to 6 per cent in payouts on maturing policies.
Market Value Reductions have been reduced by between 2 and 5 per cent and no MVRs have been increased.
The size of the ASL with profits fund was £10bn and the size of the SLAS with profits fund was £6.5bn as at December 2005.
With-profits actuary Peter Shelley says: “The positive investment returns achieved in the last couple of years and the financial strength of the with profits fund are producing real improvements in apyouts to our with profits customers. Long-term returns on maturing policies are good – around 7 per cent per annum on 20-25 year policies.”