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Prudential holds with-profits annual bonus rates

Prudential has held annual bonus rates for over 4 million with-profits customers as annual returns topped 10 per cent on its mortgage endowment policies.

Annual bonuses for all with-profits funds have been frozen, including the prudence bond and personal pensions policy at 3 per cent, and the unitised corporate pensions policy at 3.25 per cent.

The Prudential 10 and 20-year term personal pension with-profits funds returned 7.3 per cent and 9.1 per cent respectively during 2010, while the prudence bond increased in value by 7.5 per cent.

The Prudential and Scottish Amicable 25-year term mortgage endowment policies achieved the strongest returns, with the Prudential product increasing in value by 10 per cent and the Scottish Amicable product returning 12.3 per cent over the year.

The insurer says an estimated £2.2bn has been added to with-profits policy values, split equally between annual bonus and final bonus payments.

AWD Chase de Vere head of communications Patrick Connolly says, while with-profits remain on a “downward spiral”, Prudential’s performance compares “extremely favourably” with rival providers.


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Does the Prudential not have any other words in its vocabulary.It states that it has held annual bonus rates for its with-profits customers.Any chance that they may replace the word held to increased.That would be a novel concept.I believe this company’s with-profits customers have been drawing the short straw for years.The term smoothing is only beneficial to its company and its shareholders.I can never again trust a company such as this which had the audacity to plunder the inherited assets to the tune of 1.6 billion pounds to pay for products that it had mis-sold in the first place,to support new business and to pay shareholders tax bills.I equally can never ever trust the regulator who allowed the plundering to take place.The policyholders are indeed at the bottom of the heap as regards their bonuses and require immediate investigation.

  2. Pru reduces bonus rates yet again for with profits annuities. Presumably because unlike other policy holders they cannont leave. NEVER trust an insurance company with your savings. Lets hope the latest FSA consutative paper is the the start of an attack on the with profits ripoff.

  3. Prudential has apparently got a supposedly independent committee that is supposed to represent its policyholders.A representative of the Prudential or should I say Capita the outsourcing agent informed me that Prudential was one of the first to set up this independent committee about five years ago.Nothing to crow about when these policies have been around for donkeys years.I am now going to write to Prudential concerning this independent committee.I wish to know who they are funded by and I would also like to see details of the committees achievements for the policyholders.I will be requesting copies of all challenges made by the committee and all Prudentials responses.Let us hope the committee has made challenges or I will be most concerned on behalf of all fellow policyholders.

  4. I have a mortgage endowment which matures 1/05/2011.
    Amount payable is less than value quoted last year!
    So final bonus rates have been REDUCED.

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