The new with profits bonus cuts come from Legal & General and AXA.
Legal & General have announced that terminal (or final payout) bonuses will reduce by 20% and AXA by 23%. This is the fifth time that AXA have cut their bonuses in the last year, with two other cuts seen at Legal & General.
Both companies have defended their moves, stating that the overall returns at maturity for with profits policies will be higher than the actual investment returns.
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