What is Contractual Annual Interest (CAI) / Contractual Minimum Addition (CMA)?

These are the names given to the annual amount of growth we have guaranteed to provide on certain contracts. These guarantees could be of significant value to the policyholder. CAI and CMA increase the value of plans each year by the addition of units, as described in the policy / plan documents. The amount of CAI and CMA is taken into account when calculating bonuses. This means policyholders who receive CAI may receive a lower annual bonus (or no annual bonus at all) than those who do not have CAI. This is so that their overall return does not exceed the amount we consider appropriate in order to treat all of our With Profits policyholders fairly. If CAI and/or CMA applies to your customers policy / plan, it will be shown on their bonus notice.