Pru freezes with-profits bonus
13 April 2012
PRUDENTIAL has ended 10 years of falling pay-outs by announcing that the annual bonus paid on the majority of its Prudence Bonds would be 3.25%.
The insurer said the strength of its with-profits fund had enabled it to keep rates at the previous year's level. During 2003 it had continued to hold significant amounts of its fund in UK and overseas shares to enable it to benefit from the upturn in markets during the year.
Prudential said someone who had invested £10,000 in one of its Prudence Bonds 10 years ago would have seen their investment grow to £19,058 at the end of 2003.
The group will announce bonus rates for its full range of with-profits policies on 24 February.
