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Important Information: Update on the 1% Mutual Bonus

Important Information: Update on the 1% Mutual Bonus

Being a mutual means that our members, rather than shareholders, get to share in the success of our business. It also means we're an organisation that takes a long-term view to protect the interests of our members. That's why we've been in business for 179 years.

In this time, we've overcome the economic difficulties brought on by world wars and global financial crises. So, we're confident that we can withstand the economic uncertainty and market volatility that is happening as a result of the COVID-19 pandemic.

Wesleyan's financial strength remains one of the highest in the industry, meaning we have capital reserves significantly above those required of us by our regulator.

However, there is still much that the world at large needs to understand about the impact COVID-19 will have on the global economy. In order to protect our financial strength and ensure we continue to remain resilient in the current climate, we have taken the difficult decision to defer the 1% Mutual Bonus planned for 1 June 2020.

Over the coming months we will consider factors which impact our financial strength including the current economic uncertainty which may continue. As a result, we may need to cancel the 1% Mutual Bonus.

We will continue to review the situation and will inform our with profits policyholders when a final decision is made. This will be no later than 30 November 2020.�

The decision to review the 1% Mutual Bonus is consistent with guidance from our regulator, who have asked insurance companies to review any planned distribution of profits in the current climate of high volatility.

We appreciate that you may have some immediate questions, so we have provided some Q&A's at the bottom of this webpage to provide further clarification on what this could mean for you.

We hope you will understand that the decision to defer the Mutual Bonus is to benefit our members' interests over the long-term and to meet guidance set out by our regulator.

We will provide further updates in due course. Should you have any questions in the meantime, please contact your local Wesleyan Financial Services Consultant or our Customer Relationship Centre via Live Chat or email.

Mario Mazzocchi
Group Chief Executive

1% Mutual Bonus Q&A's

  • If I withdraw all, or some, of my funds before the decision is made and you do distribute the Mutual Bonus, will I receive my 1%?

    The 1% distribution will be made at the date the Mutual Bonus is added to your policy and will be based upon the value of your fund on that date:

    - If you have withdrawn all of your funds before the distribution of the 1%, you will not receive the 1%.

    - If you have withdrawn some of your funds before the distribution of the 1%, you will only receive the 1% on your remaining funds.

  • If you decide to distribute the Mutual Bonus and I add funds to my policy between now and the distribution date will I receive the 1% on the total value?

    Yes. You will receive the 1% based on the total value of your fund at the date the 1% Mutual Bonus is added to your policy.

  • Will you definitely be distributing the 1% Mutual Bonus?

    The clear desire of the Wesleyan Board is to pay the Mutual Bonus, but only if market conditions allow. This will be reviewed at each Board meeting, but it has been agreed that there will be an end date at which point a decision must be made. The final date a decision must be made is 30 November 2020.

  • Does this decision to defer or cancel impact my usual annual bonuses?

    No. We will apply the usual annual bonuses to all of our customers' policies this year.

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Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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