Norwich Union says that 70,000 people will benefit from a record £1.25bn projected maturity payout but it has cut its annual bonus rates.
The annual bonus rates have been reduced to reflect expected lower investment returns. The savings rate has been cut to 5.5 per cent from 6.0 per cent. The pensions rate has been cut to 6 per cent from 6.75 per cent.
Group chief executive Richard Harvey says: "Norwich Union has many customers whose with-profits policies will be maturing in 1999 and they are enjoying excellent returns, well above the rate of inflation and building society account rates. Our aim is to provide superior value for money."