The Co-operative Investments increases final bonus rates

April 01, 2010

The Co-operative Investments today (1 April) announced new final bonus rates for its With-profits policies.

Key points:

  • The With-profits Fund delivered strong investment performance with a return of 13.6 per cent since the last update in mid-2009. The return over the whole of the 2009 financial year was 14.2 per cent, significantly better than many other providers.
  • Final bonus rates for Accumulating With-profits policies have increased and Market Value Reductions (MVRs) have reduced or been removed altogether. These rate changes have resulted in typical increases to payouts of between 7 per cent and 10 per cent.
  • Increases in final bonus rates for traditional With-profits policies have resulted in the payout on a maturing 25 year endowment mortgage being 1.6 per cent higher.
  • With-profits policyholders continue to benefit from valuable guarantees that apply to maturity and retirement payouts which provide additional security in times of volatile equity markets.

Annual bonus rates for all With-profits policyholders are unchanged.

Shaun Cooper, With-profits Actuary at The Co-operative Investments, said: “The strong investment performance of the with-profits fund over the second half of the year has led to increases in payouts for all policyholders.

“Despite the turmoil in financial markets in the last couple of years, the fund has remained financially strong enabling us to maintain a high proportion of assets in those areas that have performed best such as equities and corporate bonds.

“The fund remains well positioned to benefit from any further recovery whilst providing policyholders with protection via the smoothing of investment returns and provision of valuable investment guarantees.”


Other relevant information:

  • The with-profits fund is one of the largest in the UK with nearly 3 million with-profits policies and around £16.5bn of assets.
  • A 25-year £50 per month endowment policy maturing on 1 April 2010 will pay £31,868, an annual return of 5.6 per cent. This compares to a payment of £28,807 for a policy being surrendered on 1 April 2009.
  • The cash-in value of a £10,000 single contribution 10-year Platinum Bond Plus policy is £11,627 on 1 April 2010 – an annual return of 1.5 per cent.
  • Approximately 27,000 Platinum Bond Plus customers who made their investments before 1 April 2000 will be eligible for a 'no-MVR guarantee' from the 10th anniversary of their investment.

Notes to editors:


Payout examples:


Term of investment (years)
Maturity value at
1 April 2010
Maturity value at
1 October 2009
Change in maturity value
Rate of return obtained
(% pa)



























Examples illustrated are for Ordinary Section with-profits endowment assurance policies for a male aged 30 next birthday at outset, paying £50 per month. Please note that past performance is not a reliable indicator of future performance.

The Co-operative Investments publishes a technical document known as the Principles and Practices of Financial Management (PPFM) of The CIS Long Term Business Fund and this explains in detail how we manage our with-profits business.

The PPFM document can be viewed and downloaded, together with a report about how we have complied with the PPFM, from our website Alternatively copies are available on request.

The Co-operative Investments is a brand name used by Co-operative Insurance Society Limited.

Date: 1 April 2010

For further information contact:

Andy Hammerton
The Co-operative Investments
0161 903 3835 / 07799 476 977