LV= cuts or holds with-profits bonus rates

Jenna Towler
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The LV= with-profits fund achieved an investment return of 9.9% in 2012 while bonus rates for policyholders have been held or cut, the firm has confirmed.

The firm has about 600,000 with-profits policyholders. It said a 25-year policy covering a £50,000 mortgage is currently paying a surplus of £15,740, for a male aged 30 next birthday at entry, the maturity value for a 25-year low cost mortgage endowment maturing on 1 March 2013 is £65,740. The mutual's with-profits pension annuity series 1 & 2 bonus rate for 2012 is 1.30%, compared to 1.50% in 2011. The with-profits income bond saw bonus rates drop from 3.25% to 3%. Its flexible whole life plan remained at 5.54%. LV= confirmed a mutual bonus of £20.9m, meaning policyholders will be...

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