Aviva cuts with-profits bonus rates (Article by William Robins in New Model Adviser on 10.02.2012)

Aviva has cut regular with with-profits bonus rates across the board, with customers in unitised life and pension with-profits policies seeing a 0.25% reduction and some With-Profits Annuity customers seeing their regular bonus cut by 1.5%.

The life company also reduced the regular bonus rates by 0.5% for conventional endowment policies in ex-CGNU and ex-CU funds.

Regular bonus rates for 2012 are 2.5% for bonds, 3% for pensions, and 2.75% for stakeholder pensions.

There has been a 0.25% rate reduction for unitised life and pension with-profits policies in the ex-CGNU fund and for unitised life policies in the ex-NULAP fund. With-Profits Annuity regular bonus rates have been reduced by 1.5% for ex-CGNU and ex-NULAP with-profits annuities.