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UK INSURER DECLARES GOOD RETURNS ON ENDOWMENT PLANS Print E-mail

UK Insurer Norwich Union under AVIVA Group continue to declare good returns on Endowment Policies in year 2007 

 

http://www.norwichunion.com/press/stories/2967-withprofits-bonus-announcement-2007.htm

 

A 25-year £50 a month mortgage endowment maturing in 2007will pay £46,829 (or 7.9% compounded annual returns), £12,898 over the target amount with the policy increasing in value by £5,054 in 2006 (excludingpremiums paid in 2006). Details are shown below

 


 

With-profits bonus announcement 200711 January, 2007

Crawford Davidson, marketing director atNorwich Union, said: "Returns from the stock market and commercialproperty continued to be strong in 2006 and as a result most finalbonus rates have increased significantly with all policiesincreasing in value in 2006.

"In addition, regular bonus rates are also being maintained for newcustomers and most existing customers – this follows anincrease in regular bonus rates for many bond holders in mid 2006.

Market value reductions (MVRs) were reduced twice last year; theyhave again been reduced at the start of this year and we aim toremove them completely as soon as the stock marketallows.

"With-profits sales have grown strongly in thefirst three quarters of 2006 due to our innovative InflationProtection Guarantee bond and we remain committed to providingcompetitive returns to both existing and new with-profitscustomers."

Figures at a glance:

·                  Strong performance from property (18.0%) and UK equitymarkets (16.2%) enabled the CGNU with-profit fund to achieve anoverall return of 11.7% before tax

·                  Bonuses totalling £1.3 billion added during 2006 for around2.5 million customers

·                  Most final bonus rates increased significantly. Forexample, for bonds invested in 2005 the final bonus increasedfrom 2% to 11% and for those invested in 1995, the final bonusincreased from 12% to 21%

·                  Money invested in 1998 now no longer subject to anMVR

·                  Policy values increased strongly during the year:

o                Cash-in value for a £10,000 single contribution 10-yearbond is £16,739, an increase in value of £1,130 during2006

o                   A 25-year £50 a month mortgage endowment maturing in 2007will pay £46,829 (or 7.9% compounded annual returns), £12,898 over the target amount with the policy increasing in value by £5,054 in 2006 (excludingpremiums paid in 2006)

o                  A 20-year £200 a month pension maturing in 2007 will pay£110,888 – with the policy increasing in value by £8,653in 2006 (excluding premiums paid in 2006).

Figures for investment and policy returns relate to theCGNU with-profit fund only. Returns quoted assume the policiesmature on 1 January 2007. Endowment example is for a 29 year oldmale at the outset of the policy.

-ends-

Press office contacts:

Norwich Union Life press office: 01904 452617 /452828 / 452791
Louise Soulsby 07800 699526
David Gwyer 07800 699508
Cheryl Cox 07800 695275
Rob Pell 07800 699563

 
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