NFU Mutual announces reduction in annual bonus rates

"NFU Mutual is a financially strong company. However, it is not immune from the impacts of market movements," said Iain Baker, Chief Actuary at NFU Mutual.

"In normal times, our smoothing policies can even out short-term fluctuations, but the extreme market conditions that we have seen - and are likely to continue to experience - make these reductions necessary

"NFU Mutual is not alone in taking this action as the exceptionally volatile movement of world stock markets in recent months and the uncertain outlook for future stock market returns has necessitated reviews of bonuses on With-Profits policies across the insurance industry."

The changes affect unitised policies and will see reductions across most terms. The level of reduction will vary.