£2.7bn bonus for Pru's with-profits

Published on Tuesday 26 February 2008 20:39

PRUDENTIAL said it was adding £2.7 billion to the value of its customers' with-profits policies following a year of strong investment returns for the fund.

The insurance giant, better known as the Pru, said its with-profits fund returned 7.2 per cent during 2007, despite the volatility seen in world stock markets and the problems caused by the global credit crunch.

As a result it is increasing the majority of annual bonuses paid on the policies by 0.25 per cent, giving an annual bonus of 3.5 per cent for a personal pension, and one of 1.2 per cent of the sum assured plus 2.5 per cent of previous bonuses for mortgage endowments.