Prudential added £2bn in bonuses across its with-profits policies during 2012 as its funds delivered returns of up to 6.3 per cent.
The provider says around £800m of this has been paid through increased annual bonuses, which provide investors with guaranteed growth. The remaining £1.2bn was added to final bonus payouts.
The returns on with-profits investments vary depending on the product chosen and the length of time invested.
Someone who invested a single premium of £10,000 in a 10-year Prudential with-profits ‘prudence’ bond would have received returns of 5.9 per cent a year over that period.
If a saver paid a £10,000 single premium into the 15-year version of the bond they would have experienced returns of 4.6 per cent a year, while the 20-year bond delivered returns of 6.3 per cent.
An individual who invested £200 a month over a 20-year term in the Prudential with-profits individual pension product would have received returns of 5.5 per cent a year.
Someone who paid £50 a month into the provider’s 25-year with-profits endowment would have experienced annual returns of 5.9 per cent. If the same person had invested £50 a month in the 25-year Scottish Amicable endowment they would have received 6.1 per cent a year.
AWD Chase de Vere head of communications Patrick Connolly says: “This bonus declaration is a clear endorsement that Prudential remains, by some distance, the leading provider of with-profits investments.
“AWD Chase de Vere has many cautious clients who are invested in Prudential’s with-profits fund and a large proportion of these are perfectly happy with the performance and lack of volatility of their policies.”