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Friends Life and Legal & General announce an increase in final bonus rates

The month of May saw something of an unseasonable shift in final bonus rates with both Legal & General and Friends Life announcing an increase in final bonus rates.

Friends Life (ex-Friends Provident) reported decent gross returns for their WP Funds; 4.2% and 5.1% (subject to the year in which the policy was taken out) since the beginning of 2013. On an annualised basis, these equate to spectacular headline returns of 17.9% and 22.0% respectively.

Alec Taylor of SL Investment Management said, “Most With profit funds remain in a very strong position, and are poised to capitalise on the continuing underlying recovery in markets. The Friends Life first quarter results demonstrate this clearly.”

Friends Life are reporting that sample payouts for typical1 endowments are up from £30,271 to £31,487, by comparing a policy taken out in May 1988 against one taken out two months earlier.

Joining the party, Legal & General also confirmed that the interim declaration (on 30 May) would lead to increased payout values for with profits customers.

Commenting on the announcement Carole Avis, Managing Director of With Profits at Legal & General said; "Since the start of this year we've achieved better than expected returns on the assets held for our with profits policyholders, due mainly to the performance of equity investments”.

Policyholders could expect that sample payouts for typical1 Legal & General endowments are up from £30,387 to £31,085, by comparing a policy maturing before 01 June 2013 and one after.

Legal & General: http://www.legalandgeneralgroup.com/media-centre/press-releases/2013/group-news-release-interimbonusdeclarationmay2013.html

Friends Life: http://www88.friendsprovident.com/common_ss/layouts/consumerSubSectionLayout.jhtml?pageId=consumer%2FSitePageSimple%3ABonus_Mid_year_review_13

 

 

 

 

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