Initial payments have been made to 37,379 With-Profits
Annuitants (WPAs) or their estates, totalling GBP81m and subsequent annual payments totalling GBP183m have also been issued.
It said a PS10,000 with-profits
bond purchased 10 years ago is now worth PS17,082, while the same amount of money invested in a typical savings account would have grown to PS12,228.
Even when shares perk up, many with-profits
bonds struggle to gain much benefit.
Prudential claims an estimated pounds 22 billion has been added to the value of its with-profits
fund since 2002; its fund is up 92.7% in 10 years, against a 59.5% rise in the FTSE All-Share index.
Worth pounds 26bn in its prime, it now has around 200,000 with-profits
policyholders and a pounds 5.48bn with-profits
Margaret Flaherty, with-profits
communications manager at Standard Life, said; "After an encouraging start to the year for investment markets, we have seen sharp falls in equity values over the last couple of months.
endowment policy into which someone had paid pounds 50 a month for 10 years would have been worth an average of pounds 6548 at the beginning of May, according to Money Management magazine.
Tens of billions are locked in with-profits
bonds, which are supposedly super safe, because they are invested in shares, bonds, fixed interest investments, property and pensions funds.
Insurance giant Aviva is to pay a Au400 million windfall to its with-profits
customers - but the amount is half what it had originally offered.
To address these issues, the FSA introduced a requirement for all firms operating with-profits
funds to publish principles and practices of financial management (PPFMs).
investments are longterm savings policies that hold back some of the returns in good years to pay out in bad ones.