Liverpool Victoria has trimmed with-profits policy bonus rates but claims its financial strength holds strong, with the FSA's realistic reporting regime not expected to have any negative effects on its capital position.
Cuts to annual bonus rates range from 0.2 per cent to 0.35 per cent, with final bonuses dropping by between 5.1 per cent and 15.3 per cent. Annual bonuses on with-profits pension annuities and unitised with-profits policies are unchanged, as announced last month.
The changes mean that a male aged 30 next birthday and paying £50 a month on a 25-year conventional endowment sees the payout fall by 10 per cent from £93,503 to £83,945.
Group actuary Ian Blanchard says: “An 11.9 per cent annual rate of return before inflation on a 25-year policy is an excellent result and confirms that our with-profits products are a highly competitive choice.”