Bonuses cut on Norwich Union with-profits policies

20 January 2005
Insurer Norwich Union has lowered the bonuses it pays on a number of its with-profits policies.

Certain policies, taken out between 1998 and 2002, have had their bonuses cut by half a per cent to two per cent.

"The investment climate has improved but the stock market is only now approaching the levels of 1997," Mike Urmston, Norwich Union's chief actuary, told BBC News.

He went on to say with-profits funds have been "significantly impacted" by poor stock market performance between 2000 and 2002.

"As a result," he continued, "we have had to cut bonuses on some policies but cuts are less extensive than in previous years."

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