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Daily Insurance Industry News
Tuesday 17th of July 2018
February 1, 2012

Standard Life cuts with-profits bonus rates

by Gill Montia

Story link: Standard Life cuts with-profits bonus rates

Standard Life cuts with-profits bonus rates

Standard Life is reducing some of its UK with-profits bonus rates.

The life and pensions provider says most plans increased in value in the year to 1st February but guarantees are building up, and it needs to ensure its with-profits fund can meet all guarantees.

The company explains: “We expect asset classes such as equities and property to offer better prospects for with-profits payouts in the long run but the higher the guaranteed benefits the more we may need to invest in lower-risk assets such as fixed interest and cash.”

As a result, some of the firm’s with-profits unit prices will grow more slowly after today.

Margaret Flaherty, Standard Life’s with-profits communications manager, says: “How this review affects individual customers depends on many factors, including their age when their plan started, and the timing and amounts of payments into their plan.”

 

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