View more on these topics

Pru cuts with-profits bonus rates

Prudential has cut its with-profits annual bonus rates by up to 0.75 per cent this year.

The firm has poured in £2.8bn to smooth the fund. Policyholders will see a typical reduction of between 6 per cent and 10 per cent in their accumulating with-profits values.

Prudential will pay annual bonuses worth £1.3bn with rates set at 3 per cent for most with-profits bonds and personal pension policies compared with 3.5 per cent last year and 2 per cent for Prudential sold annuity customers compared with 2.75 per cent last year. It will pay out £1.5bn in final bonuses.

A policyholder with a 20-year term personal pension paying £200 per month will have seen a 9.3 per cent drop in their claim value, from £103,581 in 2008 to £96,238 this year. Meanwhile a mortgage endowment policyholder with a 25-year term paying £50 per month will have seen their policy value decrease 6.1 per cent, from £39,569 to £37,738 in 2009.

Chief actuary David Belsham says: “Although investment markets have performed very poorly in 2008, our policyholders have been protected from the full impact of the market falls and will typically see a reduction of between 6 per cent and 10 per cent in their accumulating with-profits policy values. In such exceptional market conditions, this compares very well with many directly exposed investment options.”


Sovereign risk is key structured issue

Jubilee Financial Products says the credit rating of a structured product issuer should be less of a consideration for advisers than the government that backs the bank.

Tories could separate banking

Shadow Chancellor George Osborne has hinted that a Conservative Government could formally separate retail deposit-taking and investment banking.

Graphic Content – August

Given the release of employment data from the US on 5 August, we wanted to focus on employment data in this month’s Graphic Content. The Graphic Content below shows us that young and middle-aged workers were hit the hardest by the Great Recession and have never caught up. Since the job market started to recover […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm