Member Bonuses
Sharing Success
If you have a With Profits policy other than a Flexible Income Annuity, your MGM Advantage With Profits policy will be invested in either our Conventional or Unitised (Bonus Growth) With Profits Funds. The annual bonus rates for these policies are as follows.
Note that for Conventional With Profits policies each year we normally declare a level of annual bonus in respect of the previous year. So, the 2013 announcement relates to performance in 2012. For Unitised With Profits policies the annual bonuses may be changed at any time.
Bonuses for Conventional With Profits policies were announced on 1 April 2013, and for Unitised With Profits policies on 1 May 2013.
Conventional
With Profits Life policies | With Profits Pension policies |
|---|---|
| Annual bonus in respect of 2012 is 0.75% of the sum assured. From 1 April 2013, the interim annual bonus rate is 0.75% of the sum assured. | Annual bonus in respect of 2012 is 0% of the guaranteed annuity plus declared bonuses. From 1 April 2013, the interim annual bonus rate is 0% of guaranteed annuity plus declared bonus. |
Unitised (MGM Advantage Bonus Growth Fund)
Life policies | Pension policies |
|---|---|
| The annual bonus rate is 1.25% from 1 May 2013. | The annual bonus rate is 1.5% from 1 May 2013. |
If you have a Maturity Plus Plan Option (MPPO) policy, the annual bonus rate is 0.8% from 1st May 2013.
Final Bonus
Conventional With Profits Life Policies
The final bonus for policies vesting on or after 1 April 2013 will depend upon when you started your policy.
Conventional With Profits Pension Policies (excluding Self Employed Retirement Plans)
The final bonus for policies vesting on or after 1 April 2013 will depend upon when you started your policy.
Conventional With Profits Self Employed Retirement Plans
For Self Employed Retirement Plans the final bonus will depend upon the year of commencement of benefit.
Unitised With Profits Life Plans
The final bonus for plans vesting on or after 1 February 2013 depends on the month of investment.
Unitised With Profits Pension Plans
The final bonus for plans vesting on or after 1 February 2013 depends on the month of investment.
Market Value Reductions
Currently no market value reductions apply to UK Unitised With-Profits policies.
For details on our International business please see here.
Flexible Income Annuity
The Flexible Income Annuity Annual Bonus in respect of 2012 is 0.25%. This is applied in April 2013 in the form of additional units to your policy. The effect on your fund will be shown on your annual statement. If your policy started in 2012, you will receive a bonus for the part of the year your policy was in force.
More information about With Profits funds and Flexible Income Annuity funds can be found here.
Useful documents:
MGM Advantage Annual Report and Accounts 2011 pdf (13MB)
Principles and Practices of Financial Management (pdf 137KB).
MGM Advantage 2012 Annual Report To With-Profits Policyholders