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Royal London holds annual with-profits bonus rates

Royal London has held annual bonus rates across the majority of its with-profits products as the provider announced an increase in final bonus payouts.

Annual bonus rates for Royal London policies have been held at 0.5 per cent for both single premium and regular premium business.

Final bonus rates for Royal London single premium and regular premium customers have been increased for 15, 20 and 25 year term products.

Annual bonus rates for Scottish Life conventional with-profits policies were maintained at 0.1 per cent, while the annual bonus for Scottish Life unitised with-profits customers was increased from 0.1 per cent in 2010 to 2 per cent in 2011.

Final bonus rates on Scottish Life ‘s conventional with-profits endowment have also increased across the board.

Royal London group finance director Stephen Shone said: “Our policyholders have once again enjoyed good returns from their with profits policies over the medium to long term.

“Today’s announcement shows that the annualised return on a Royal London 25-year with profits endowment is 5.9 per cent. This represents an annualised real rate of return over and above inflation of 2.8 per cent. And for a similar Scottish Life policy the annualised return was 5.3 per cent, with a real rate of return of 2.1 per cent.

“In the Royal London long term fund, the asset shares for relevant policyholders will be enhanced as a result of a mutual dividend being allocated for 2011.

“In the Scottish Life fund, we have enhanced asset shares by 6 per cent this year as part of our program to distribute the estate. Payouts for maturing policies are also being targeted at more than these enhanced asset shares.”

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