The distribution in 2026 of a one-off bonus to eligible members of £80 million represents the value of the exit bonus not yet paid. The Board’s decision to convert the exit bonus to a one-off bonus simplifies our approach to member bonuses and reduces the risk of members not receiving the exit bonus amount in the future by adding it to the policy values of all remaining on 1 April 2026. The one-off bonus rate is 4.60%, less a small allowance for the costs of making the change.
In making this change, the Board considered advice from the With-Profits Committee, With-Profits Actuary and Chief Actuary.
Broadly, we expect payouts to remain materially the same because of the conversion of the exit bonus to a one-off bonus – it reduces the risk of members not receiving the exit bonus amount in the future by adding it to the policy values of all remaining eligible policies on 1 April 2026.
The one-off bonus rate of 4.60% (less a small allowance for the costs of making the change), applied on 1 April 2026 to the value of eligible policies, is invested in the same underlying mix of assets as the rest of the policy benefits.
Just like the exit bonus, and in exceptional circumstances, the one-off bonus can be reduced or removed though can be reinstated at a later date.
No. Our with-profits policies will continue to be eligible for other bonuses such as mutual, regular and final bonuses as per individual policy terms and conditions. These are unaffected. For information on the bonuses your policy is eligible for, please look at your annual statement.
We’d only reduce or remove the one-off bonus in exceptional circumstances if the Board considers it appropriate. In doing this, the Board would consider the current performance and capital position of the business, and our aim to treat all policy groups fairly, having considered advice from the With-Profits Committee, With-Profits Actuary and Chief Actuary. If the one-off bonus is reduced or removed, it could be reinstated if the Board believes it’s appropriate to do so.
Like the mutual bonus, the one-off bonus will be paid to eligible policyholders when their policy matures, is cashed in, pays out on a death claim or when money is received from the policy. £80 million has been distributed to eligible policies via the one-off bonus.
The rate of 4.60% (less a small allowance for the costs of making the change) was added to eligible policies on 1 April 2026 based on the policy value at that time. However, for eligible annuity members they'll receive an increase in their regular income, unless we're paying guaranteed benefits. The one-off bonus does not increase guaranteed benefits or the ‘underpin’ on conventional pension lump sum benefits.
The one-off bonus, added to the value of an eligible policy on 1 April 2026, will be paid out when your policy ends, or you start to receive an income from it. For some unitised with-profits products, any one-off bonus will reduce the number of units we cancel when you make a partial withdrawal.
We won’t add the one-off bonus to any eligible policies when guaranteed benefits, or the ‘underpin’ on conventional pension benefits paid as lump sums, are payable.
We don’t expect you to notice any difference to your income due to the one-off bonus. This is because it’s likely that the value of your guaranteed yearly income will always be more than the value of the investments it’s paid from and the one-off bonus won’t be added to guaranteed benefits.
We won’t add the one-off bonus to guaranteed benefits where they are a fixed amount. So, if these are higher than the underlying value of your policy including the one-off bonus, then you won’t benefit from the one-off bonus. However, you would be benefitting from the guaranteed benefit.
Further information can be found in your guide to how we manage our with-profits business.
The eligibility for one-off bonus is the same as the exit bonus, since the exit bonus is being converted to a one-off bonus. These products are newer and therefore these policyholders’ investments didn’t contribute, or didn’t contribute as much, to the success of the LV= General Insurance business as our older legacy with-profits products and hence weren’t eligible for the exit bonus or now the one-off bonus.
If you have a unitised with-profits product, you can take partial withdrawals by cancelling (or surrendering) some of the units you have purchased with your policy. For most unitised with-profits products* eligible for the one-off bonus, any one-off bonus will reduce the number of units we need to cancel for your partial withdrawal. You still receive a fixed withdrawal amount.
*The exceptions are the All-In-1 Investment Bond and Guaranteed Capital Bond where any one-off bonus is only paid out when the bond ends.
