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Friends cuts payouts by 6 per cent

Friends Provident has become the latest life company to announce it is reducing with profits bonuses to cut payouts by 6 per cent.

It says it is taking this action to reduce payouts to more sustainable levels and will be reducing regular bonuses by 0.5 per cent. Friends says stockmarket falls have led to a negative return of 4.8 per cent for the first six months of the year.

The payout cuts will only affect maturing policies and the company says the payouts still reflect considerable smoothing.

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