The Prudential have announced that it plans to increase the year-on-year payouts for it’s with profits policies, by more than 10 per cent. Endowment policies that are to mature in 2007 are also set to reach the repayment targets and it is expected that 96 per cent of Scottish Amicable endowments will do the same.
A spokesperson for Prudential has commented that Prudential’s products had delivered significantly better returns in 2006, compared with other funds such as balanced managed funds, distribution funds and cautious managed funds.
Legal and General is also expected to boost the bonus payments for with profits policies by an increase of 43per cent on last year.
Our view
This is good news but given the recent stockmarket falls, expect a potentially different picture next year.