Fund growth lets Prudential raise payouts

INSURANCE giant Prudential said its £83 billion with-profits fund - the largest in the UK - increased by 20 per cent last year on the back of strong stock market returns.

That will enable the company to increase pay-out values to the bulk of its 4.5m policy-holders by 18 per cent, it said.

Prudential said 20-year pensions policies were now worth up to 18.3 per cent more than they had been a year ago, while 25-year endowment policies were 16.7 per cent higher and Scottish Amicable branded-policies were up 16.1 per cent.