The Co-operative Investments today (1st April) revised final bonus rates for its With-profits policies.
The Co-operative Investments today (1st April) revised final bonus rates for its
· 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.
|Term of investment (years)
||Maturity value at 1st April 2011 (£)
||Maturity value at 1st October 2010 (£)
||Change in maturity value (%)
||Rate of return obtained|
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:
The Co-operative Investments
0161 903 3835 / 07799 476 977