A handy bonus for NFU Mutual investment customers has just been announced;
NFU Mutual shared a £71m Mutual Investment Bonus with eligible With-Profits customers in 2024, the UK’s leading rural insurer can reveal. Mutual Investment Bonus is applied as an uplift to investments, representing a 1.85% increase in investments for 2024, 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, over £207m 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 will remain at the increased rate of 1.85% from 2025. This means that by the end of 2025, the fund will have benefited from an additional 7.6% return over a five-year period due to the Mutual Investment Bonus.
Saurabh Agrawal, Head of With-Profits at NFU Mutual, said: “We’re delighted to continue 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.
“After sharing £71m of Mutual Investment Bonus in 2024, we are pleased to announce we are maintaining the uplift at 1.85% in 2025.
“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. We continue to look to enhance our With-Profits funds for our customers and over 2024, have further expanded the types of assets we invest in within the fund by including overseas property and Infrastructure assets.
“Investing in a range of different asset types helps to reduce risk as they tend to behave differently in different market conditions, which can help reduce the overall volatility of the fund.”
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 57,500 eligible policies.
NFU Mutual’s With-Profits fund has delivered strong returns over the past decade. The With-Profits Pension provided returns of 76.9% in the 10 years between the start of 2015 and end of 2024. The With-Profits ISA returned 73.4% over the same period.
NFU Mutual has a proud history of sharing success with members. It also provides a separate Mutual Bonus to its General Insurance customers through a saving on their renewal premium.
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.
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