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

April 01, 2011

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

Key points:

· The with-profits fund delivered an investment performance with a return of 12.5 per cent during 2010.

· Changes in final bonus rates for traditional with-profits policies have resulted in the payout on a maturing 25 year endowment mortgage being 2.9 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 with-profits policyholders are unchanged.

 

Other relevant information:

· The with-profits fund is one of the largest in the UK with nearly 3 million with-profits policies and around £17.7bn of assets.

· A 25-year £50 per month endowment policy maturing on 1st April 2011 will pay £31,785, an annual return of 5.5 per cent. This compares to a payment of £26,895 for a policy being surrendered on 1st April 2010.

Payout examples

Term of investment (years) Maturity value at 1st April 2011 (£) Maturity value at 1st October 2010 (£) Change in maturity value (%) Rate of return obtained
(% pa)
10 5,886 5,691 3.4 (0.4)
15 10,923 10,398 5.0 2.5
20 18,383 17,769 3.5 4.1
25 31,785 30,904 2.9 5.5
30 57,930 57,520 0.7 6.9

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

 

For further information contact:

Andy Hammerton

The Co-operative Investments

0161 903 3835 / 07799 476 977

andy.Hammerton@cfs.coop