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PLC
Range Of Policy
The size of AXA sun Life’s with-profits funds, was at 31/12/2006, £9.7billion. AXA Sun Life offer both unitised and conventional policies in the form of Mortgage endowments, bonds, or pensions. There are however different types of policy within these different groups. For example as well as a personal pension fund, AXA sun Life also offer a new world stakeholder pension. |
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Typical asset share
The asset mix of investments backing AXA's with profits policies has been as follows: |
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| Class |
% at mid 2006 |
% at end 2006 |
| Equities |
43% |
54% |
| Property |
18% |
16% |
| Fixed Interest |
39% |
27% |
| Cash and Other |
0% |
3% |
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Financial Strength
Moody’s - Aa3
Standard and Poors - AA-/Stable/--
MVRs
The most recent press release from AXA sun Life informs us that as of 2007, AXA Sun life have removed all MVRs from existing with-profits policies, however, also written in the release was that “If the investment performance of the with profits fund is lower than that reflected in bonuses already added, we may apply a Market Value Reduction in the future”.
Source: www.axa.co.uk/media/pressreleases |
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With-profits return and bonus rates
The most recent regular annual bonus rates are provided in the table below: |
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| Product type |
From 27/02/06 |
From 02/10/06 |
From 5/03/07 |
| Mortgage endowment* |
30% |
3.0% |
3.5% |
| Bond |
1.75% |
2.5% |
3.25% |
| Personal pension |
1.75% |
2.5% |
3.0% |
| Stakeholder pension |
3.5% |
3.75% |
4.0% |
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Source: www.axa.co.uk/media/pressreleases/2007
* The rate shown for Mortgage Endowments includes a guaranteed interest rate of 3%
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Payout examples
The following payout examples show the position of bonds in March 2007 immediately following this declaration, compared to their values one year earlier. For pension and endowment policies, the following maturity payout examples show the position of policies maturing in March 2007, immediately following this declaration, compared to those maturing one year previously. All ages quoted are at commencement of the policy. |
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| Contract type |
Value March 06 |
Value post declaration march 07 |
Return over final year |
Average annual growth |
| Unitised bond 5 yr |
£10,446 |
£11,299 |
8.2% |
2.5% |
| Unitised bond 10 yr |
£13,641 |
£15,376 |
12.7% |
4.4% |
| Unitised bond 15 yr |
£22,140 |
£25,657 |
15.9% |
6.5% |
| Unitised mortgage endowment (20 yr) |
£24.034 |
£24,702 |
2.8% |
6.7% |
| Conventional mortgage endowment(25yr) |
£39,255 |
£41,305 |
5.2% |
7.3% |
| Unitised personal pension (20yr) |
£105,728 |
£105,536 |
-0.2% |
7.3% |
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