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.