With profits bonus declarations are now in full flow from providers and the bag is very mixed.
Whilst many companies are reducing rates, others are leaving some rates at the same level and slightly increasing others. This obviously produces mixed opinions, depending on which policy you hold.
Liverpool Victoria has announced an across the board decision to leave unitised with profits bonus rates untouched until 2005. Conventional with profit policyholders will have to wait until February for news about their bonus rates. Liverpool Victoria's group actuary said: 'this builds on our very good long-term with profits performance'.
Our View
Liverpool Victoria is a very strong company with considerably more assets not tied down by liabilities than many rivals. This gives a strong base for policyholders, especially when annual bonuses need to be paid. By being a strong company, a more consistent level of bonus can be expected, in line with market movements.