Axa Sun Life is cutting payouts on its former Equity & Law conventional life and pensions policies by 1 per cent, effective from this month. The regular bonus rates for 2003 and interim rates for 2004 are 2 per cent, down from 3 per cent in 2002.
The announcement affects around 10 per cent of Axa's with-profits policies, with the main policy declaration taking place in March. Chief actuary Peter Shelley: “Although investment returns have increased during 2003, the effect of the poor performance of the stock markets over the past few years means that several years of increasing performance would be needed to restore regular bonus rates. This is to ensure all our customers are treated fairly.”