NFU declares with-profits bonus

NFU Mutual has declared bonus rates on with-profits policies for 2012, adding that its main fund grew by 9 per cent during the year.

Following the terminal bonus awards, annual returns on unitised with-profits bonds have varied between 4.8 per cent and 6 per cent depending on the term, while annual returns on pension plans have ranged from 5.4 per cent to 7.1 per cent.

Patrick Connolly at AWD Chase de Vere said the results were good largely because NFU maintains a high weighting in riskier assets like shares. “However, we wouldn’t recommend any new investments in with-profits. We believe investors can get better long-term returns with greater flexibility and lower charges by selecting good quality investment funds instead.”