View more on these topics

Pru with-profits investors receive £2bn bonus payout

Prudential paid out £2bn in bonuses to four million with-profits investors during 2013 as investment returns hit 8 per cent for some policyholders.

The insurer’s annual with-profits bonus statement, published this week, reveals that an estimated £700m was added to policy values through annual bonuses last year. A further £1.3bn was paid out in final bonuses during the year.

The firm says policyholders typically will have seen their savings grow by between 5 per cent and 8 per cent in 2013. It says bonus rates will be increased or maintained on all unitised plans this year.

Prudential actuarial director David Belsham says: “This is another good year for our with-profits policyholders as we continue to demonstrate that investing in a strong with-profits fund can produce good returns for the cautious investor. 

“Our fund has consistently outperformed the market over the long term and has given our customers better returns than many other investment options that are available.

“While we have seen some stabilisation of markets over the past 12 months, the outlook continues to be uncertain and interest rates remain at historically low levels.”

Cazalet Consulting founder Ned Cazalet says: “Prudential is on the front row of the grid as far as with-profits underlying asset performance is concerned.

“Much of its with-profits fund investment performance has been used to enhance claim values over and above amounts contractually agreed. That is not always the case for some other with-profits providers.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com