Friends Provident has announced a review of with-profits bonus rates across all of its funds following good investment returns in 2010.

The review brings together bonus announcements for Friends Provident, Axa Sun Life and Sun Life Assurance Society following the acquisition of the majority of Axa's UK life business in September 2010.

Final bonus rates have been increased or remain the same, while regular bonus rates for some business have been modestly increased. As a result, with-profits payouts are generally higher than a year ago.

Results for Friends Provident’s with-profits fund include:

  • With-profits fund include a return of 13% in 2010.
  • Equities and property now account for 49% of the fund's investments, increased from 26% at the end of 2009 .
  • Regular bonus rates were maintained with some unitised rates increased for pensions and overseas business.
  • Profits payouts were generally higher than October 2010 as a result of improvements in final bonus rates.
  • Regular bonuses increased for life policies in the smaller closed fund and with profits payouts show strong increases as a result of improvements in all final bonus rates.

    • Results for the Axa Sun Life with-profits fund include:

    • The with-profits fund produced a return of 13% in 2010.
  • Equities and property accounted for around 68% of the fund's investments.
  • All regular bonus rates maintained at current levels.
  • With-profits payouts show strong increases as a result of improvements in final bonus rates.

    • Results for Sun Life Assurance Society with-profits fund include:

    • The with-profits fund produced a return of 11% in 2010.
  • Equities and property accounted for around 54% of the fund's investments.
  • All regular bonus rates maintained at current levels.
  • With-profits payouts show strong increases as a result of improvements in final bonus rates.

    • Andy Carr, group chief actuary at Friends Provident, said: "2010 saw further improvements in investment market conditions relative to the lows of 2008/9, with positive returns from all major asset classes resulting in increased payouts for the majority of with profits policyholders.

    "As a result, many policyholders invested in the Friends Provident, Axa Sun Life and Sun Life Assurance Society with-profits funds will see the cashable values of their plans increase by more than 10% over 2010.

    "It has also been possible to increase regular bonus rates across a number of Friends Provident products, particularly pensions, leading to a modest increase in the rate at which guarantees build up.”

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