With-profits funds focus on terminal bonuses

The increasing emphasis on terminal instead of annual bonuses by UK with-profits providers is part of a strategy to increase total returns, rather than being part of an attempt by companies to offload risk to policyholders, according to senior industry figures.

Prudential saw total investment returns increase by 12.7% on its with-profits funds in 2006 but for the fourth year in a row, failed to increase its annual bonus rates. Annual bonuses are guaranteed whereas terminal ones vary in line with

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here