With Profits - Bonus Declaration
Each February we make our bonus declaration. As a With Profits customer, you'll receive an annual bonus statement showing the performance of your investment for the previous year.
An overview of 2007 performance from Mark Gregory, Managing Director, With Profits
"During 2007, our investments with the best returns were in Asian and European stock markets. The value of our investments in UK and North American equities also grew. Later in the year, our fixed income investments, particularly
Gilt
( Bonds issued by the UK government.)
and
Index linked
( Premiums and/or benefits linked to a specific index such as Retail Prices Index (RPI) or National Average Earnings Index (NAEI). )
assets, showed strong performance although the value of our property holdings fell."
2007 highlights
- Total bonuses declared of £665 million - up 12% on 2006
- With Profits sales increased by 25% in 2007
The average returns for With Profits products over the last 7 years are below:
| Product | Annual Return % |
||||||
|---|---|---|---|---|---|---|---|
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
|
| LIFE | |||||||
Unitised Life (for example: Flexible Protection, Flexible Mortgage, Capital Accumulation, Flexible Investment, Unit Savings (Prospects and New Savings Plan), Capital Investment Portfolio, Capital Preservation)
- |
-5% |
-7% |
12% |
10% |
16% |
11% |
4% |
Conventional Life (for example: Cashbuilder, |
-5% |
-7% |
12% |
10% |
16% |
11% |
4% |
| PENSIONS | |||||||
| Unitised Pensions | -7% |
-9% |
14% |
12% |
19% |
10% |
4% |
| PRP | -7% |
-9% |
14% |
12% |
19% |
10% |
4% |
| MP2 (including EMA), HP3, PIPE, Shell AVC plan | -7% |
-9% |
14% |
12% |
19% |
10% |
4% |
| ConBOP | -7% |
-9% |
14% |
12% |
19% |
10% |
5% |
| BONDS | |||||||
| Income & Growth Bonds dated October 2003 and later with a guaranteed minimum amount payable on the tenth anniversary | - |
- |
0% |
10% |
15% |
9% |
4% |
| With Profits Income Bonds dated April 2002 and later, other than those above, and Investment Bonds dated July 1997 and later, switched in to With Profits in 2003 or later | - |
-6% |
11% |
10% |
15% |
9% |
3% |
| All other With Profit Bonds |
-5% |
-7% |
12% |
10% |
16% |
11% |
4% |
| Annuities | |||||||
| With Profits Annuities | -4% |
-6% |
14% |
12% |
20% |
12% |
4% |
The figures above include the costs of managing the investments supporting your plan but don't include other charges that might be applied on certain contracts.
Your plan is designed to smooth returns (hold returns back in the good years and pay them out in the bad), meaning that the returns or bonuses added to your plan over the years will not be the same as those shown here.
Past performance is not an indicator of future performance.
Source: Legal & General
To find out more about this year's Bonus Declaration please download our
bonus factsheet (PDF 63KB).
