Following the announcement three months ago that Standard Life would be carefully reviewing the level of bonuses they paid on with profits policies, a decision has been made to leave bonuses unchanged.
Whilst Standard Life believes that bonuses will fall in the longer term, the decision for no change must be welcome news for policyholders.
Our View
The recent up-turn in the UK economy, resulting in a rise above the 4,000 mark for the FTSE 100 index obviously has something to do with the decision. Whilst the stock market has a long way to go before recovery, the news can only be good for policyholders.
Some insurance companies have suspended with profits bonuses totally for policyholders, whereas Standard Life took the decision not to do this, but to monitor their own returns carefully.
This definitely shows commitment to policyholders.
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