Royal London has held the annual with profit bonus rates across both Royal London and Scottish Life funds.
The bonus rate for the Royal London long-term fund was kept at 0.5 per cent for all policies, while the closed Scottish Life fund also froze yearly bonus rates at 0.1 per cent.
Annualised returns on a Royal London 25-year with-profits endowment is 6.1 per cent, representing a real annual rate of return over and above inflation of 2.9 per cent. For a similar Scottish Life policy the annualised return was 5 per cent, with a real rate of return of 1.8 per cent.
Final bonus rates increased across the Royal London 15-year, 20-year and 25-year term regular premium funds, although the 25-year single premium fund saw a drop from 81 per cent in January 2010 to 70.5 per cent in January 2011.
Final bonus rates for Scottish Life conventional with-profits endowment policies increased for 15-year, 20-year and 25-year term policies.
Royal London group finance director Stephen Shone says: “We expect maturity payouts on many policies, particularly those of short and medium terms, maturing in 2011 to be higher than on similar policies in 2010.
“Although payouts on some longer term regular premium life policies may be lower than on similar policies maturing in 2010, we believe all maturity payouts will still represent good long-term returns.”