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Prudential reports dip in with-profits annual bonus rates
by Daniel Grote on Feb 26, 2013 at 13:29
Prudential has reported a dip in its with-profits annual bonus rates for 2012, cutting them by around a fifth compared to 2011 levels.
Annual bonus rates have been set at 2% for the Prudence Bond and personal pension policies, and at 2.25% for corporate pensions. This compares with respective payments of 2.5% and 2.75% last year.
It said it expected to pay out over £2 billion in bonuses, down slightly from the £2.1 billion it announced last year. However, the amount it expects to pay out in final bonuses has risen, from £1.1 billion to £1.2 billion.
Annualised returns stand at between 4.6% and 6.3% across its with-profits funds, a slight drop from the returns it reported last year.
Prudential chief actuary David Belsham said: 'Our approach to setting bonus rates - based on prudence, consistency and fairness - has remained dependable year after year. It has continued to provide a high degree of assurance to our customers during the uncertain market conditions of recent years, and has enabled us to deliver strong annualised returns for our customers over the medium to long term.
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