Provider today (2 March) announces its annual with profits payouts and performance details.
By Emma Ann Hughes | Published Mar 02, 2012
Article from FT Adviser
The LV= with profits fund earned an investment return of 5.7 per cent in 2011.
A 20-year policy LV mortgage endowments covering a £50,000 mortgage is currently paying a surplus of more than £5,800.
For a man aged 30 next birthday at entry, the maturity value for a 20-year low cost mortgage endowment maturing on 1 March 2012 is now £55,818.
The LV= mortgage endowment guarantee also means that all LV= with profits mortgage endowment policies paid to full term are guaranteed to meet the mortgage covered by the policy.
A £50 a month 25-year savings endowment policy maturing on 1 March 2012, for a male aged 30 next birthday at entry, will pay out £44,108, equivalent to an annual yield of 7.8 per cent.
Policyholders will also get a 1 per cent mutual bonus uplift within their with profits payout.
Paul Downey, with profits spokesperson for LV=, said: “LV=’s long-term with profits payouts continue to be among the best-performing in the market.
“This year we are also proud to be giving our policyholders an even greater return by including an additional mutual bonus.”
LV=’s mutual bonus was launched in 2011 and rewards qualifying members for their ownership of the society.
The LV= board assesses LV=’s financial performance and capital position over the year, and decides on an appropriate level of mutual bonus to declare.
For 2011, mutual bonus is taking the form of an additional investment into members’ with profits funds.
The bonus represents an increase of 1 per cent to the value of the asset shares.
This includes an interim allocation of 0.5 per cent made on 1 September 2011, along with a further 0.5 per cent, allocated on 1 March 2012 (except for with profits pension annuities where the income is increased by the full amount from 1 February 2012).
LV= mutual bonus is not a guaranteed benefit of the with profits plan and is at the discretion of the LV= board.
Article from FT Adviser