LV= has held or increased annual bonus rates for over 700,000 with-profits policyholders as investment returns surged during 2013.
The mutual insurer’s 2013 with-profits performance statement, published this morning, reveals the LV= with-profits fund delivered investment returns of 11.1 per cent last year.
Annual bonus rates range from 0 per cent to 6.17 per cent depending on the policy taken out.
Annual bonuses on the pension income plus annuity, which remains open to new business, increased from 2.25 per cent in 2012 to 4 per cent in 2013.
Final bonuses, which are paid out when the plan reaches maturity, vary from policyholder to policyholder.
An announcement regarding LV=’s mutual bonus payment, which is set on a discretionary basis depending on how the company has performed during the year, will be made on 31 March.
LV= group finance director Phillip Moore says: “With-profits remain an attractive investment proposition for certain market segments and we are committed to offering great returns to our customers.
“This excellent performance and the possibility of additional mutual bonuses continue to benefit existing with-profit members as well as for our new propositions – our pension income plus annuity and our flexible guarantee bond.”