FTAdviser.com

Advertising

Wesleyan Assurance Society has revealed it matched or increased past bonus payouts on long-term with profits endowments in 2007.

The society - which provides tailored financial services for doctors, dentists, lawyers and teachers - has claimed payouts on its 25-year endowments were 11 per cent higher than its next competitor, LV=, and 43 per cent higher than the industry average. For a male aged 30 next birthday paying £50 a month, Wesleyan said its payout is £68,746, compared to the £61,625 which it claimed is offered by LV= and the £47,992, it calculated as the industry average.

On unitised with profits policies, life and investment bonus rates increased from 4 per cent to 4.25 per cent between 2006 and 2007, gross of annual management charge. For pension products, the bonus rate increased from 4.5 per cent to 4.75 per cent and for Isa products it was maintained at 5 per cent. For conventional with profits policies, the bonus on sum assured all bonus rates also increased in 2006.

In March, Wesleyan unveiled its growth strategy, with plans to hire more than 100 financial consultants over the next two years representing an increase of 50 per cent in the society’s salesforce. Wesleyan has also appointed a new non-executive director, Derek Zissman - who recently retired from his role as vice-chairman of KPMG, who joins the board on 9 May following the society’s annual general meeting.

Tim Pindar, actuary for Wesleyan, said: "We believe our cumulative investment return of 97 per cent is the best in the industry. Alongside this, our considerable financial strength means that our policyholders can be assured that their investments are in safe hands."

The news comes as Saffron Building Society called for a back-to-basics approach toward lending.

The Saffron Walden-based building society said prudent financial planning and engagement with local people would protect members during the current economic downturn.

Speaking at the society’s AGM held at the end of April in Bishops Storford, Andy Golding, chief executive of Saffron Building Society, said its robust business model would withstand fall-out from the global credit crunch.

He added that relative independence from bank loans had bolstered the society’s ability to withstand the adverse credit conditions and noted that as of 31 December 2007, its retail savings balances of £643m were more than its mortgage balances of £589 m. It also has a strong capital position of £47m.