Scottish Widows With-Profit Fund bonus rates changed

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Scottish Widows With-Profit Fund bonus rates changed

Mon 13th Feb 2006

The regular bonus rates on 750,000 Scottish Widows With-Profit Fund policies have been increased.

Market value reductions have also been reduced for the fifth time in just over one year.

Currently, the largest market value reduction applying to any policy is five per cent and some products are experiencing no reduction at all.

The Scottish Widows With-Profits Fund has also had a pre-tax investment return of 16 per cent in 12 months and the company claims that policy values have increased in response to this.

Actuarial director of Scottish Widows Adrian Eastwood said: "2005 was good news for our with-profits customers.

"It saw the With-Profits Fund earn 16 per cent – its best return since 1997.

"The values of our customers' policies have therefore also increased through higher bonuses and reduced market value reductions."

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