Maturing policy-holders with Standard Life will be pleased to hear that the company has announced increased pay-outs on life assurance policies at a time when many companies are reducing them. Its terminal bonuses reflect the exceptional performance of investment markets in recent years.

But bonus returns are not so strong for those with existing policies. Reversionary or annual bonuses have decreased on both life and pensions products in line with reduced expectations for future investment returns.

Yearly unit growth rates on with-profits funds have been reduced by 1 per cent, for example, amid expectations of falling returns in a low-interest climate.

Standard Life personal pension policyholders benefited from a real return of 10 per cent on a sample 10year policy while its life policies have also performed well, delivering a real return of 9.1 per cent after inflation is taken into account.

The company said it grew its core business in Ireland by 20 per cent in the year to November 15th, 1998.