CIS joined other Life Assurance giants in declaring new bonus rates in April for the Co-operative range of products, including WP endowment products – no April Fool jokes here.
The company reported a return on the With-Profit fund of 10.2% (gross) for 2012.
The typical endowment pay-outs quoted by CIS are now £30,027, down from their quoted equivalent figure of £31,785 in March 2012. The company maintain that WP policy-holders continue to benefit from security in times of volatile equity markets.
Royal London (including Refuge, United Friendly and the Scottish Life brand) also declared new bonus rates.
Concentrating on the Royal London and Scottish Life WP Funds, Royal London Group Finance Director Kerr Luscombe said:
“We believe that for such investors the fundamental argument for investing in real assets remains strong. Over the longer term, real assets - such as equities and commercial property - have delivered above inflation returns for investors. Today’s announcement shows that the annualised return on a Royal London 25-year with profits endowment is 5.7%. This represents an annualised real rate of return (over and above inflation) of 2.6%. And for a similar Scottish Life policy the annualised return was 5.2%, with a real rate of return of 2.1%.
“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 2012.
“We are continuing our practice of distributing the surplus assets in the Scottish Life Fund to eligible policyholders, having regard to current and potential future capital requirements.”
Royal London also report that typical endowment pay-outs for the Royal London brand are now £31,793 (January 2013) compared with £32,857 (January 2012). The Scottish Life WP Fund follows a similar trend, reporting typical endowment pay-outs of £28,224 this year, compared with £28,903 (January 2012).