Retirement, investment and insurance group LV= today announced today launching of £10 million bonus scheme for policyholders based on the group’s performance this year.
The members of RNPFN, whose policies were acquired by LV= will not receive the mutual bonus payment since their investments are held in a ring-fenced fund. The board announced that they intend to make bonus payment an annual event and would determine ‘from time to time’ the category of members eligible for the mutual bonus.
The first bonus will be invested in members’ with profit funds on 1st of September as additional investment.
The asset share price value will go up by 0.5 percent after factoring in the bonus. The latest bonus is in addition to the regular benefits which LV= members enjoy including the bonuses that with profit members receive.
“The Association of British Insurers (ABI) has slammed the government’s proposal of tax-relief abolition on life assurance premiums, saying the move will affect 1.5 million policyholders”, said group finance director at LV= Philip Moore.
“We are one of the UK’s strongest mutuals and we intend to make the mutual bonus an annual benefit for our members subject to continued strong trading performance and positive financial outlook”, he added.