For many years, we have worked hard to position ourselves so that we are able to meet the needs of our members and offer them long term value. We have made substantial investment in our infrastructure, people and risk management whilst strengthening our finances to make ourselves more resilient to external shocks.
The results for 2013 have been mixed; our income protection business did not perform as well as anticipated. The decline in dental earnings over the last few years has been a significant drag on new business. In addition, we have seen a rise in the level of surrenders as our members seek to consolidate their finances. On a positive note, our performance has been buoyed by the strong momentum in the financial markets.
The board decided to recommend dividends for insured and commuted members to be maintained at £1.44 and £1.80 per share respectively. Our interest and terminal bonus rates remain unchanged at 5% and 15% respectively. To put this into context, we returned nearly £6.8 million to our members in bonuses in 2013.
Please click here to access our 2013 annual report and financial statements