<p>According to the firm, regular bonus rates have increased by up to 1.5%, compared with the corresponding period of 2006, while with bonus profits have increased in value by up to 16% over the same period. <br /><br />AXA also commented that market value reductions have been removed from all products.<br /><br />According to AXA, the increases follow continuous improvements in investment returns. The firm stated that AXA Sun Life (ASL) with profits fund produced an 11% investment return during 2006, while the Sun Life Assurance Society with profits fund produced a 10% return.<br /><br />AXA said that terminal bonuses have also improved, resulting in an average 4% increase in overall payouts over the last year. In addition, the firm said that, in view of the financial strength of the ASL old with profits fund, a special bonus would be declared on policies invested in that fund. The bonuses will be approximately 4% for unitized policies and 2.5% for conventional policies.<br /><br />Peter Shelley, AXA's with profits actuary, commented: The improvement in investment returns is now feeding through into higher rates of regular and terminal bonuses, continuing the trend that saw us increase rates twice during 2006. <br /><br />Mr Shelley concluded: This is good news for with profits policyholders, who are now seeing further improvements in the payouts on their policies. The fund remains strong and is well placed to turn good stock market performance into further improvements in payouts.</p>
