Standard Life: Increase to with-profit values

Tuesday, 26 January 2010 12:00

Standard Life has announced most of its with-profits policy customers will see year-on-year increases in their plan values.

The news comes following a review of the provider’s UK with-profits final bonus rates.

It said that in addition to increased values of plans, regular bonuses were to be maintained at current levels for over one million unitised and conventional with-profits plans.

And fewer customers with unitised plans would face market value reductions (MVR).

Standard Life said plan values depended on the level of returns being made on investments in assets in the with-profit funds.

Equity market returns, it said, had improved but not enough to recover from the downturn and assets such as fixed interest and property had delivered lower returns.

But Margaret Flaherty, the firm’s with-profits communications manager, said: “Despite this many with-profits investments have outperformed regular savings in a building society, with a 25-year savings endowment providing a return of £23,139 compared with £20,799.”

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