NFU Mutual shares £46m of Mutual Investment Bonus

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• Mutual Investment Bonus increases fund values of eligible With-Profits customers
• As a mutual, NFU Mutual is able to share its investment success and financial strength
• With-Profits funds are available in ISAs, Pensions, and Investment bonds  

NFU Mutual shared a £45.9m Mutual Investment Bonus with eligible With-Profits customers in 2022, the UK’s leading rural insurer can reveal.

Mutual Investment Bonus is applied as an uplift to investments, representing a 1.25% increase in investments for 2022, and is in addition to the annual bonus provided to customers that receive one.

As a mutual with no shareholders, eligible customers who invest in the With-Profits fund benefit from the success of the fund and its financial strength, reflecting the current and expected economic conditions.

Thanks to the Mutual’s financial strength, almost £170m has been added to investments of eligible With-Profits customers through Mutual Investment Bonus over the past five years.

There is further good news for With-Profits customers, as Mutual Investment Bonus has been increased to 1.5% in 2023.

Saurabh Agrawal, Head of With-Profits at NFU Mutual, said: “We’re delighted to share the benefits of our strong financial position with our eligible With-Profits customers through Mutual Investment Bonus.

“As a mutual without shareholders, we can share our success with our customers, whether they buy general insurance policies with us or invest in our With-Profits funds.

“Our customers typically stay with us for a long time, which means the long-term investment horizon of the With-Profits fund is appealing to many of them.

“The approach of smoothing can provide many investors with peace of mind in times of market volatility – and can help minimise the impact of adverse market movements to those withdrawing money.

“The With-Profits funds enable customers to invest in a variety of assets, including equities in companies based in both the UK and overseas, commercial property in the UK, and both corporate and government bonds.”

NFU Mutual offers With-Profits funds to its ISA, pension, and investment bond customers.

Mutual Investment Bonus is for eligible NFU Mutual customers who invest in the With-Profits fund. There are currently over 62,500 eligible policies.

NFU Mutual’s With-Profits fund has delivered strong returns over the past decade. The With-Profits Pension provided returns of 72.8% in the 10 years between the start of 2013 and end of 2022. The With-Profits ISA returned 70.7% over the same decade.

NFU Mutual has a proud history of sharing success with members, and also offers a separate Mutual Bonus to its General Insurance customers that provided savings of £247m in 2022.

With-Profits is a long-term investment for those investing money for five years or more. Returns on investments are smoothed out over time, allowing customers to reduce the impact of the peaks and troughs of volatile stock markets. Mutual Investment Bonus is an additional uplift given on top of this smoothing process.

-ENDS-

Notes to editors

Eligible customers are all customers who hold With-Profits policies, except those with the Capital Access Bond (CAB).

Performance figures are based on a £10,000 single premium for the Personal Pension Account and a £1,000 single premium for the ISA, commenced on 1st January 2013. These figures are shown net of typical charges and deductions relevant for each product type but surrender penalties have not been applied. Figures include Terminal Bonus where applicable.

Our With-Profits policyholders share in the profits and losses of the Long-Term Business Fund. Therefore, the With-Profits Committee regularly reviews the level of surplus in the Fund and assesses whether it is appropriate to make an additional bonus to existing policyholders, considering fairness between different groups and generations of policyholders. In 2022, the With-Profits Committee agreed that the Long-Term Business Fund was able to support a Mutual Investment Bonus at the rate of 1.25% per annum. As a result, the asset share for With-profits policies were enhanced by 1.25% in 2022, which improves the Funds’ ability to pay terminal bonuses. Mutual Investment Bonus is reviewed annually and may increase or decrease in future years.

For further information please contact:

Matt Wilson
Senior Press Officer
07890 255381
matt_wilson@nfumutual.co.uk

Find more of our press releases at the NFU Mutual Media Centre: www.nfumutual.co.uk/media-centre

About NFU Mutual: NFU Mutual offers a wide range of products, including general insurance, life, pensions, and investments. These products and services are delivered through our network of NFU Mutual Agent offices, as well as through our direct sales and service centres. With nearly 300 local businesses located in rural towns and villages throughout the UK, NFU Mutual has become part of the fabric of rural life and remains committed to serving the needs of our members nationwide.

NFU Mutual is proud to deliver more than simply insurance. Making farming safer, supporting rural initiatives across the UK and helping to look after the environment are just some of the ways we do that. To find out more about everything we do to support our communities, visit https://www.nfumutual.co.uk/about-us/responsible-business