Legal & General\u2019s With Profits fund returned 1.7% (before tax) in 2011 and the group has confirmed that it can maintain annual bonus rates at last year\u2019s levels for conventional endowment mortgage customers, and for the majority of its bond and unitised pensions customers.<\/p>\n
Total bonuses of \u00a3459 million have been added to With Profits policies (up 11.6% on 2010) with the increase also reflecting a rise in the number of customers whose With Profits policies matured over 2011.<\/p>\n
On endowment mortgages, final bonus rates will deliver payouts close to target.<\/p>\n
For example a \u00a350 per month 25-year endowment maturing on 1st March 2012 will have a maturity value of \u00a333,601, a shortfall of \u00a3777 against the target amount of \u00a334,378 (example based on a level premium mortgage endowment for a male aged 29 at entry).<\/p>\n
At the same time, \u00a310,000 invested in a With Profits growth bond 10 years ago has a cash-in value of \u00a314,905 today.<\/p>\n
Commenting on prospects for this year\u2019s With-Profits performance Tim Sheldon, L&G\u2019s With Profits actuary says: \u201cIn these uncertain times the benefits of smoothing and guarantees can provide advantages to With Profits policyholders over other forms of investment.\u201d<\/p>\n
source: www.insurancedaily.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
Legal & General\u2019s With Profits fund returned 1.7% (before tax) in 2011 and the group has confirmed that it can…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-210","post","type-post","status-publish","format-standard","hentry","category-companies"],"_links":{"self":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=210"}],"version-history":[{"count":0,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/210\/revisions"}],"wp:attachment":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}