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Axa raises bonuses for with-profits

Axa has raised the regular bonus rates on its two with-profits funds by up to 0.75 per cent.

The move means investors could see an increase of up to 6 per cent in payouts on the Axa Sun Life with-profits and the Sun Life Assurance Society with-profits funds.

Regular bonus rates on ASL’s with-profits bonds and with-profits personal pension have increased from 1.75 per cent to 2.5 per cent.

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 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 payouts to our with-profits customers. Long-term returns on maturing policies are good at around 7 per cent a year on 20-25-year policies.”

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