Wesleyan Starts With-Profits Bonus Review

TEP – 8 April 2010

Wesleyan Assurance Society, the small Birmingham-based mutual society, has announced a review of its with profits bonus rates.

The financial services specialist for professionals said pay-outs on 25-year endowments have been 43.6 per cent – over £15,500 – better than average.

Cumulative investment return for policyholders of 64.7 per cent over 10 years compared with a FTSE All Share gave a total return of 17.7 per cent over the same period.

In addition, all annual bonus rates were maintained or increased, there were no market value reductions on any policies and a mortgage endowment guarantee on open fund policies.

Tim Pindar, chief actuary of Wesleyan said: “Wesleyan’s with profits policies regularly feature among the very best in industry tables for long-term performance. Our customers recognise that this type of investment, held with the right provider, provides a very attractive savings option.

“One of the clear benefits of Wesleyan’s financial strength has been the ability to remain exposed to equities. This in turn has helped our investment team to produce a market-leading investment performance in 2009. We expect this to improve our competitive position still further, which is good news for our policyholders who will reap the benefits over time.”

It follows an announcement earlier this month that Wesleyan had enjoyed a good year in 2009 seeing new business sales rise by 11 per cent, with Isa and unit trust sales up 59 per cent and income protection product sales rising by 36 per cent.

Craig Errington, chief executive of Wesleyan, added: “Our policyholders have the security of knowing that they are part of one of the UK’s financially strongest mutuals with an excellent reputation for its investment strategy.

“The combination of our considerable financial strength and strong investment performance leaves us well placed for the future and gives our clients peace of mind for their investments with us.”