Wesleyan Assurance Society today announced its with-profits bonus rates and payouts for 2007. Key points include:

Payouts on 25 year endowments are 11% better than the nearest competitor and 43% better than average;*

Cumulative investment return of 97% over five years;

All annual bonuses increased or maintained;

Wesleyan rated a “rock-solid” 10/10 in Cazalet Consulting WP Ratings;

Cast-iron mortgage endowment guarantee on open fund policies.


The table below for 25-year endowments shows that Wesleyan’s payout is 11% higher than the nearest competitor and delivers almost £21,000 (43%) more than the average payout.

Tim Pindar, Wesleyan’s Actuary said, “We believe our cumulative investment return of 97% is the best in the industry.

Alongside this, our considerable financial strength means that our policyholders can be assured that their investments are in safe hands.

Our ability to smooth returns means that our policyholders are protected from the volatility of the stock markets, and over the long term will continue to see competitive payouts.”

Wesleyan’s Chief Executive, Craig Errington added “While turbulence in the stock markets looks set to continue, our policyholders have the security of knowing that they are part of one of the UK’s financially strongest mutuals with an excellent reputation for its contra-cyclical investment strategy.

Inevitably some years will bring in smaller returns than others but investors should look at the long-term picture which, for us, looks extremely healthy.”

Ned Cazalet, the respected industry analyst, commented in his With Profits Ratings report 2007 that, “Wesleyan’s with profits policyholders should be very pleased with their choice of insurance company.

Thanks in part to stellar underlying investment performance, the Society breezed through the difficult market conditions of the early 2000s with its very considerable financial strength intact, leaving it well placed to provide a plump capital cushion to insulate policyholders from future market difficulties…..”

A recent Money Management Individual Pensions survey (March 2008) ranked Wesleyan’s pensions With Profits fund top with profits performer for single premiums invested over five and ten years.

The survey noted that “Wesleyan continues to perform excellently across a range of terms including a top five appearance over five and ten years for regular contributions and over five, ten and 15 years for single contributions.”

*The table below is based on a 25-year term endowment policy for a male aged 30 next birthday, paying £50 per month.

Company	2008
Wesleyan	£68,746
Liverpool Victoria	£61,625
Royal London	£48,773
CGU (GA to 98)	£47,045
Prudential	£46,686
Legal & General	£44,966
Commercial Union	£41,879
Scottish Widows	£40,685
Norwich Union	£40,585
Standard Life	£38,970
Average Payout	£47,992

Wesleyan Assurance Society Bonus Announcement 2008

Except where stated, figures apply to the Wesleyan Open Fund. There is also a closed fund called the Medical Sickness Society (MSS) Fund, which contains the with profits business of Medical Sickness Society before the merger with Wesleyan in 1997.

With-Profits Fund investment mix *

Investment type	% of fund at end of 2007	% of fund at end of 2006
UK Shares	62	66
Non-UK Shares	6	5
Property	14	14
Fixed Interest	10	7
Other	8	8

* A slightly different mix applies to the MSS Fund.

At 01/01/08 the equity backing ratio (EBR) was 82%.

With-Profits Fund Investment Performance *

2003	2004	2005	2006	2007	2003-07
+17.8%	+14.3%	+21.3%	+15.8%	+3.9%	+97%

As the table shows this represents a cumulative return of 97% over five years.

* Invested assets backing with profits business, subsidiaries excluded. Slightly different investment returns apply for the MSS Fund.

Financial Strength

Wesleyan’s financial strength has for many years been consistently well above the industry average. The 2007 Cazalet Consulting ratings scored Wesleyan a “rock-solid” 10/10 for the fourth consecutive year in its analysis of with profit providers. (See Notes to Editors below).

The statutory free asset ratio at the end of 2007 (after deducting required capital) is 16.8%.

Annual Bonus Rates

Unitised With Profits policies:

On life and investment products the bonus rate is increased from 4.00% to 4.25% (gross of annual management charge).

For pension products the bonus rate is increased from 4.50% to 4.75% (gross of annual management charge).

For ISA products the bonus rate is maintained at 5.00% (gross of annual management charge).

For some policy types, the bonus rate is applied net of an annual management charge.

Conventional With Profits policies:

The bonus rates for the main classes of conventional policy are shown below. The rates for other classes are available on request.

	Bonus on sum assured/attaching bonus (%)	Bonus on sum assured/attaching bonus (%)
	2007	2006
Open Fund
Life	2.25/5.00	2.00/4.00
Pensions	0.50/1.00	0.30/0.50
MSS Fund
Life	1.50/4.00	1.00/4.00
Pensions (cash contracts)	2.00/2.00	1.50/1.50

Payouts - Open Fund

Single Premium Bonds
Based on a £10,000 single contribution

	Maturing 1.5.08       £	Maturing 1.5.07       £	Yield (before inflation) % p.a	Building Society yield % p.a. **	Inflation (to Jan 08) % p.a.
5 year capital Investment Bond*	17,703	14,663***	12.1	3.4	3.3

* This investment does not include the security of capital, which is characteristic of a deposit with a bank or building society.

** The Building Society figures are net of basic rate tax for a five-year period ending 28.02.08 for a 90-day notice account. Source: Lipper

*** Policy maturing in 2007 was a Select Investment Bond.

Endowments
Based on a male aged 30 next birthday paying £50 per month.

	Maturing 1.5.08       £	Maturing 1.5.07       £	Yield before inflation % p.a.	Building Society Yield % p.a. **	Inflation (to Jan 08) % p.a.
10 yr savings endowment*	8,213	8,186	6.1	3.2	3.0
25 yr savings endowment*	68,746	70,280	10.6	4.0	3.3
25 yr mortgage endowment*	66,952	68,729	10.5	4.0	3.3

* These investments do not include the security of capital which is characteristic of a deposit with a bank or building society.

** The ten-year building society figure is based on an average 90-day notice account with a premium of £50 per month to the end of the term and is net of basic rate tax for a ten-year period ending 28.02.08.

The twenty five-year building society figure is based on an average instant access account with a premium of £50 per month to the end of the term and is net of basic rate tax for a twenty five-year period ending 28.02.08.

Pensions
Based on a male paying £200 per month for an exact number of years term and retiring at age 65.

	Maturing 1.5.08        £	Maturing 1.5.07        £	Yield before inflation % p.a.	Inflation % p.a. (to Jan 08)
10 yr pension	33,605	32,368	6.6	3.0
20 yr pension	148,501	154,031	10.2	3.0

Payouts - MSS Fund
Endowment based on a male aged 30 next birthday paying £50 per month. Pension based on a male paying £200 per month for an exact number of years term and retiring at age 65.

	Maturing 1.5.08       £	Maturing 1.5.07       £	Yield before inflation % p.a.	Building Society Yield % p.a.**	Inflation % p.a. (to Jan 08)
25 yr endowment*	69,672	68,084	10.7	4.0	3.3
20 yr pension	149,724	145,483	10.3	n/a	3.0

* This investment does not include the security of capital, which is characteristic of a deposit with a bank or building society.

** The building society figure is based on an average instant access account with a premium of £50 per month to the end of the term and is net of basic rate tax for a twenty five-year period ending 28.02.08.

NB. Payouts in the Open Fund changed from January 2008 and will change again from May 2008. In the MSS Fund payouts changed from October 2007 and will change again from April 2008.

For more information and interviews please contact:

Bernadette Bogan or Navdeep Bhatti 0121 200 9609
Wesleyan Press Office press@wesleyan.co.uk

Sophie Hull 0207 404 9660
Vanbrugh Communications

Notes to Editors:

Wesleyan Assurance Society, founded in 1841, is a mutual organisation. Its core values are Insight, Performance and Trust.

Wesleyan offers specialist financial advice to hospital doctors, GPs, dentists, teachers and lawyers, through its principal distribution brands Wesleyan Medical Sickness, Wesleyan for Teachers and Wesleyan for Lawyers.

Wesleyan received a 10/10 rating for the fourth consecutive year in Cazalet Consulting’s latest research of with profits providers (2007), as shown in the table below:

Company	Cazalet Consulting 2007   - Rating out of 10
Wesleyan	10
Liverpool Victoria	10
NFU Mutual	10
Prudential	9
Axa Sun Life	8
CGNU Life & CULAC	8
Legal & General	8
MGM Assurance	7 or 8
Clerical Medical	7
Ecclesiastical	7
RNPFN Fund	7
Royal London	7
Scottish Equitable	7
Scottish Friendly	7
Scottish Widows	7
Teachers' Provident	7
CIS	6 or 7
Brittanic WP	6
National Mutual	6
Police Mutual	6
Royal Liver	6
TWEFS	6
Windsor Life	6
Friends Provident	5
Guardian Assurance	5
Norwich Union L&P	5
Pearl	5
Sun Life Assurance	5
Winterthur	5
Former Royal Life	4
Scottish Life closed	4
Scottish Mutual	4
Scottish Provident	4
Standard Life	4 - 7
Phoenix & London	3
Zurich Assurance	3
London Life	2 or 4
Former Alba	2
Equitable Life	2
NPL	2

In August 2005 Wesleyan announced that all mortgage endowment policies issued by Wesleyan Assurance Society were guaranteed to pay the original loan amount in full.

The Wesleyan Group has in excess of £4 billion of funds under management as at 31 December 2007.

In 2007 Wesleyan Assurance Society won the ifs Financial Innovation Awards 2007 for Most Effective Customer Segmentation Strategy.

Wesleyan came first for realistic free asset ratio (the most significant measure of financial strength for With Profit insurers) in the most recent Ernst & Young review of UK Life Insurance Companies.

Wesleyan is one of only four UK life companies to receive a rating of Excellent for Financial Strength by A.M Best, a global credit rating organisation.

Past performance is no guarantee of future performance and some values have been achieved during a period of high investment returns and interest rates.

Some past performance figures are based on a style of With Profits policy no longer available from the Wesleyan. However, the factors influencing the benefits under Wesleyan’s new unitised With Profits policies are not materially different. The basis upon which pension funds are taxed has changed.

Important notes:

Future bonus rates are not guaranteed and may vary, as they depend on profits yet to be earned. The illustrative maturity amounts include periods of high inflation and high investment returns.

A market value reduction on encashment (except on maturity or death) can be applied which will reduce the payout on With Profits investments.

Full written terms and conditions of Wesleyan products are available on request. All charging structures are applied to the product at the time the policy was effected.