It has also announced that there will be no change to the firm’s approach to MVRs although this is reviewed regularly in the light of emerging market conditions.
Prudential chief actuary David Belsham says: “Today’s change reflects the consistent way in which we have managed the Fund to ensure a fair approach to the setting of bonus rates. In an environment where markets have fallen significantly, our policyholders have benefited from the downside protection provided by our Fund. This demonstrates the benefit of being invested in Prudential’s strong with-profits fund which is supported by an inherited estate of £6.2bn as at September 30”.
He adds that the move is prudent and will ensure the continuing long-term strength of the Fund and protect the ongoing interests of Prudential’s long-term customers.