The traditional with-profits policy is actually a great way to save long term, here’s the word;
NFU Mutual, the UK’s leading rural insurer, shared £74m amongst eligible With-Profits customers in 2025 through its Mutual Investment Bonus.
Mutual Investment Bonus is applied as an uplift to investments, representing a 1.85% increase for 2025 and is additional to any annual bonus received by customers.
Customers who invest in the With-Profits fund are entitled to the Mutual Investment Bonus – more than 55,500 policies are eligible.
As a mutual with no shareholders, eligible customers who invest in the With-Profits fund benefit directly from its success, reflecting both strong past performance and the potential for continued future growth.
Thanks to NFU Mutual’s financial strength, over £281m has been added to investments of eligible With-Profits customers through Mutual Investment Bonus over the past five years.
The 2025 figure is up from the £71m shared with customers in 2024 through Mutual Investment Bonus and the additional returns from the bonus have more than offset the investment charges paid by customers in recent years – delivering a strong outcome for members.
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.
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.”
Despite continued market volatility, NFU Mutual’s robust financial position has enabled it to maintain a high level of solvency and resilience to current market fluctuations.
This strength provides reassurance to members and underpins NFU Mutual’s ability to continue investing for the long term whilst supporting its customers through changing market conditions.
There is further good news for With-Profits customers, as Mutual Investment Bonus has been increased to 1.90% for 2026. This means that by the end of 2026, the fund is expected to benefit from an additional 8.6% return over a five-year period due to the Mutual Investment Bonus.
Saurabh Agrawal added: “After sharing £74m of Mutual Investment Bonus in 2025, we are pleased to announce we are increasing the uplift to 1.90% in 2026.
“We are committed to delivering long-term growth for our members, while ensuring fairness across generations and maintaining the financial strength needed to keep our promises through periods of market volatility.”
He continued: “The With-Profits funds enable customers to invest in a variety of assets, including equities in companies based in both the UK and overseas, as well as commercial property in the UK and both corporate and government bonds.”
During 2025, NFU Mutual enhanced the With-Profits funds for customers by expanding the range of assets held within the fund, including the addition of overseas property and infrastructure assets.
“Investing in a diverse mix of assets helps to reduce risk as they tend to perform differently in different market conditions which can help reduce the overall volatility of the fund,” he added.
NFU Mutual offers with-profits funds to its ISA, pension and investment bond customers.
NFU Mutual’s With-Profits fund has delivered strong returns over the past decade. The with-profits pension provided returns of 81.1 % in the 10 years between the start of 2016 and the end of 2025. The With-Profits ISA returned 75.4% 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.
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