With-Profits: Bonus Declaration at 1 October, 2026

With-Profits Sub-Fund 1 (WPSF1)

This fund contains policies originally issued by Reliance Mutual, Burslem Mutual and Nation Life policyholders.

Annual bonus

The following annual bonus rates were declared with effect from 31 December 2025. They are percentages applied to the original sum assured, with the exception of Reliance ordinary branch insurances where the rate is a percentage of the original sum assured plus attaching bonuses.

This table does not include contracts originally written by Burslem Mutual and Nation Life.

A final bonus (sometimes also called "terminal bonus") may be paid on all with profits policies when they become claims on death or at maturity. An allowance may also be made for final bonus within the calculation of surrender values. Where paid, the amount of bonus is expressed as a percentage of the basic sum assured and attaching annual bonuses on the date of the claim. Final bonus rates are not guaranteed and may be altered at any time.

Different rates apply to ordinary and industrial branch business written by Reliance Mutual and other companies, and to whole life and endowment assurance policies.

Final bonus

The rates of final bonus depend on the year the policy commenced to share in profits, with longer duration policies receiving higher rates of bonus.

Final bonuses are expressed as a percentage of Sum Assured plus attaching Reversionary Bonus. Please click the link below to view the rates that apply to death and maturity claims arising on or after 1 October 2026:

Bonus Rates

With-Profits Sub-Fund 2 (WPSF2)

This fund contains policies originally issued by Criterion Life Assurance Limited

Annual Bonus

The following annual bonus rates were declared with effect from 31 December 2025.

Life policies - for all premium paying policies, 55% of the sum of all premiums, other than those to cover special risks, paid since the last declaration of bonus in December 2018 are available as a cash benefit or may be converted to an annual bonus. For non-premium paying policies an equivalent premium is used.

Pension policies - for most premium paying group pension scheme policies, 55% of the sum of all premiums paid since December 2018 are converted to an annual bonus using a set mortality factor and interest rate. No bonus is paid on paid-up plans, although some contracts have a guaranteed increase in benefits each year.

Final Bonus

Final bonus is paid on life with-profits policies on death or maturity, and longer duration policies receive higher rates of bonus.

Final Bonus rates are expressed as a percentage of guaranteed benefits. Please click the link below to view the rates that apply to death and maturity claims arising on or after 1 October 2026:

Final Bonus Rates

With-Profits Sub-Fund 4 (WPSF4)

This fund contains former Family Assurance Time Retirement Annuity policies.

Deferred annuities

Both the annual and final bonus rates for deferred annuities are percentages applied to the annuity plus attaching bonuses. The annual bonus has been declared in respect of the year 2025. The final bonus applies to policies commencing to pay a pension from 1 October 2026.

Annuities in payment

When annuities are put into payment, the proportion of the annuity represented by the final bonus part of the converting deferred annuity remains a non-guaranteed part of the annuity paid, and may vary from year to year.

Increases to the initial level of annuity paid have been introduced. The guaranteed part of the initial annuity is increased by the rates set out in the following table. These increases are not guaranteed and may be changed at any time.

With-Profits Sub-Fund 6 (WPSF6)

This fund contains the former Hearts of Oak Friendly Society with-profits policies.

Currently, 100% of the special bonus is being paid on claims under both life assurance and pension policies. A final bonus (sometimes also called "terminal bonus") can be paid on all with-profits policies in this sub-fund when they become claims on death or at maturity; an allowance can also be made for this final bonus within the calculation of surrender values.

The final bonus is a percentage of the total benefits, excluding final bonus, the date of the claim. The rate of final bonus that will be added to claims from 1 October 2026 is 68.8% for pensions business and 67.0% for life business, an increase from 64.0% and 62.2% paid from 1 April 2026. Final bonus rates are not guaranteed and may be altered at any time.

Annuities in payment from WPSF6 continue to receive their non-guaranteed annuity benefits in full and a bonus annuity of 0.5% of the basic annuity. This bonus was introduced in 2019 and is non-guaranteed.

For Unitised With-profits policies, the non-guaranteed bonus on policies with a 3% guaranteed bonus remains at 0% and for policies with a 0% guaranteed bonus, the non-guaranteed bonus remains at 2% for claims on or after 1 October 2026. Market Value Reductions can apply when a policy is surrendered, and depend on the premium payment year. Final bonuses may also apply depending on the premium payment year.