90:10 with-profits fund explained

Unit linked

Questions about my plan

Understanding your choices

Fund information: unit linked plans in series 1, 2, 2a, 2b, 3, 3b & 7

The with-profits 90:10 fund shares out its profits and losses at a ratio of 90% to policyholders and 10% to Zurich. The fund invests in fixed and variable interest investments, shares, property and cash.

Asset Mix

Fund investment mix by value at 30 June 2025

90:10 with-profits chart

The mix of investments varies between groups of plans and the investment mix for unit linked plans is shown here. The investment mix has not changed significantly in the 12 months to 30 June 2025 and there are no current plans to significantly change the investment mix in the future as we expect around 28% to remain invested in shares and property.

How did the funds perform in the 12 months to 30 June 2025?

The return achieved by the assets allocated to unit linked plans was:

  • 6.8% before tax and charges for pension plans and
  • 5.6% for life and investment plans before charges.

On average the charges for managing the fund were less than 0.7% of the fund’s value.

Previous performance figures

Before tax and charges

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1.3% 8.7% 9.8% 0.5% 9.9% 2.2% 2.5% -9.9% 8.8% 3.9%

After tax
1.3% 7.2% 8.3% 0.6% 8.1% 1.9% 2.2% -7.7% 7.2% 3.3%

Current bonus rates

The rates below were declared on 13 January 2025.

Life Plans excluding Investment Bonds

Fund Series Regular Bonus Current Final Bonus**
2 EL 3%* 160%
2a EL 2.5%* 303%
2b EL 2.5%* 109%
3 EL 2.5%* 261%
3b EL 2.5%* 109%

Investment Bonds

Fund Series Regular Bonus Current Final Bonus**
2 EL 3%* 159%
3 EL 2.5% 207%

Pension Plans

Series 1 EP (excluding Offshore version): The unit price for this series is calculated with reference to the value of the underlying fund so changes every day. The daily price also includes the adjustments made when valuing investment in other series by adding final bonuses or applying an MVR.

There is a guaranteed minimum price that applies on your selected retirement date and during 2025 it will increase by 3.0%. On 30 June 2025, the guaranteed minimum price was 420.3p compared to 1490.7p which is the price at which units were sold.

Fund Series Regular Bonus Current Final Bonus**
Offshore 1 EP 4%* 79%
2 EP 4%* 79%
2a EP 3.0%* 218%
2b EP 3.0%* 138%
3 EP 3.0%* 192%
3b EP 3.0%* 138%
7 EP 4%* 79%

* This includes the guaranteed rate of annual bonus.

** Final bonus rates are not guaranteed as they are periodically reviewed and changed from time to time (without notice) to ensure everyone receives their fair share of the fund's performance.

As the fund is closed, we aim to give all remaining investors a fair share of the estate (the part of the fund we use to help maintain bonus rates when returns are lower or to meet unexpected payments from the fund). For 2025, the final bonuses paid to investors leaving the fund will include an estate distribution of 80% of asset share, unless plan guarantees are higher. Note: This rate is not guaranteed and can change at any time which may cause significant changes in plan values.

We may reduce your plan value by applying a Market Value Reduction (MVR) if the regular bonuses we’ve added to your plan are greater than the smoothed return the fund achieved while you were invested in it - to make sure we only pay you your fair share of the fund.

Many plans have a date on which we guarantee not to apply any MVR and this date will be shown on your yearly statement.

While performance of the fund means we haven’t needed to apply MVRs since 2010 this may change in the future.

Information we send to customers

Bonus information is included with your yearly statement.

A copy of the leaflets, showing information about fund performance can be found through the following links:

Bonus leaflets for the year to:

How is the with-profits 90:10 fund managed?

The Principles and Practices of Financial Management’ (PPFM) shows how we manage the money in the with-profits 90:10 fund. This was last updated in May 2024.

How do I know you're managing the fund properly?

Zurich Assurance Ltd has to tell its with-profits policyholders each year if it has complied with its obligations in the PPFM (Principles and Practices of Financial Management). It does this through the annual report (last published in June 2025, next issue due June 2026) from the board of directors, including a separate report from the with-profits actuary on Zurich Assurance Ltd's compliance with the PPFM. In preparing the report, the directors seek the view of the independent person.

It is the opinion of the board of directors that during 2024:

  • the company has complied with its obligations in the PPFM
  • the way discretion was exercised was appropriate
  • competing or conflicting rights, interests or expectations were addressed in a reasonable and proportionate manner.

The report contains further information on this, particularly for bonus rates, investment strategy, surrender values, expenses and charges, changes to the PPFM and customer communications. (You may wish to refer to the PPFM for the definition of technical terms).

The board of directors have appointed Alison Carr to provide it with an independent assessment of compliance with the PPFM. Mrs Carr will also advise the board on how any competing or conflicting rights and interests of policyholders and shareholders have been addressed. This role is a senior manager appointment (SMF15) within the FCA’s Senior Managers and Certification Regime. The board have given Mrs Carr this Statement of Responsibilities for her role. The Statement of Responsibilities covers all aspects of the management of and the exercise of discretion in respect of the fund, including those matters which Rule 20.5.3 of the FCA’s Conduct of Business Sourcebook requires to be covered in a terms of reference.

Unit linked plans were sold after 1985 and generally offered a choice of funds to invest in, including the unit linked with-profits fund. The with-profits fund was closed to new customers in 2003 and is generally no longer available for new investments to existing plans. Payments to us buy units in the fund(s) of your choice. Bonuses are added to these plans by increasing the price of the with-profits units. We send customers a statement each year (near the plan anniversary) showing the value of the units in each fund. Each year, following the bonus declaration, we also send customers information about the fund performance together with a statement telling them what the bonus rate(s) are for the series invested in.

This section aims to provide answers to some of the questions we are asked by customers about their investment in with-profits.

Your yearly bonus statement will show which with-profit fund you invest in. Series 1, 2, 2a, 2b, 3, 3b & 7 invest in the 90:10 fund and Series 4, 5, 6, 8 & 9 invest in the 100:0 fund. Alternatively, please call us on:

This includes regular bonuses, final bonuses and market value reductions (MVR).

A regular bonus will be added to a plan by changing the unit price each day. Once added, it cannot be taken away. Bonus rates depend on the type of plan and the series you invest in. They can change at any time. The reason for different final bonus rates for different plan types and series is to give each group of customers their fair share of the fund. This is achieved by adding a final bonus or applying a market value reduction (MVR) when units are cancelled. An MVR protects the interest of those who remain invested within the fund. The amount and timing of investments as well as the claims and expenses experienced by different groups of customers means any final bonus or MVR can vary from plan to plan. Further information can be found in the guides explaining how we manage the fund.

The yearly statement shows the MVR or final bonus at that point in time. It will also show if the plan has a date on which we guarantee an MVR will not apply. However, since 6 September 2010 we have not applied an MVR to any withdrawals from, or cancellations to, plans investing in the with-profits funds.

For the 90:10 fund, the final bonus/MVR rates are regularly reviewed. They tend to change once a year but we can change them more frequently if necessary. We do not give customers advance notice. The bonus rates differ with each series.

For the 100:0 fund, the final bonus/MVR rates change daily. The bonus rates differ with each series.

Smoothing is a method of reducing the ups and downs in the value of your investment by paying out the returns through a system of bonuses. This is a special feature of with-profits.

Smoothing works by holding back some of the returns from good times to help pay out bonuses in poorer times. Equally, losses made in poor times may also reduce gains in good times. In the long term we can only pay out what the fund’s assets achieve. We will do this by increasing guaranteed payouts when it is prudent.

If you end your plan early and at a time when the bonuses added are more than the amount justified by the funds performance, we might apply a market value reduction.

We send you a statement each year, near your plan anniversary, showing you the fund value and the surrender or transfer value at that time. Values can change from day to day.

If you want to know the current surrender or transfer value, please call us on:

Monday to Friday 9am - 5pm excluding Bank holidays.

We may record or monitor calls for training and quality purposes.

Your plan benefits are guaranteed provided you maintain any regular payments. Guarantees may apply only at a particular date, for example the maturity date or selected retirement date.

Regular bonuses once added cannot be taken away. Some guarantees may be valuable and you should make sure that you understand them before taking any action.

Guaranteed rates of annual bonus (on unit linked with-profits plans in Series 1, 2, 2a, 2b and 7)

The following series have a minimum yearly bonus:

With-Profits Series Pension (EP) Life (EL)
Series 1 (excluding offshore) Rate set each year - current rates N/A
Offshore Series 1* 4% 3%
Series 2* 4% 3%
Series 2a* 1% 0.75%
Series 2b 1% 0.75%
Series 7* 4% N/A

*No more money can be paid into these series.

Market value reduction (MVR) free date

At maturity, selected retirement date or death, we would not apply any MVR. Investment bonds started after August 1995 have an option, usually on each 10th anniversary of the plan to cancel the with-profit units without any MVR applying. This date is shown on your yearly statement, although since 6 September 2010 we have not applied an MVR to any withdrawals from, or cancellations to, plans investing in the with-profits funds.

Your yearly statement shows what benefits the plan provides at maturity/retirement or if you die before your plan ends. Some plans include additional benefits covering illness and these will also be shown on your yearly statement. If you want to find out more about the benefits call us on:

Monday to Friday 9am - 5pm excluding Bank holidays.

We may record or monitor calls for training and quality purposes.

We can provide an illustration based on current assumptions using different rates of investment return. These will give you a range of values for your plan using assumptions for investment growth and our expectation of future charges. These are included automatically on most yearly statements.

If you have an endowment plan, we will send you an illustration each year showing you if it’s on track to meet the target amount at maturity. Find out information about the illustrations we send out on mortgage endowments.

You can see this on your plan yearly statement or if you have a mortgage endowment, this can be found in the ‘Your plan now…’ section of your plan update letter. Alternatively, to find out more call us on:

Monday to Friday 9am - 5pm excluding Bank holidays.

We may record or monitor calls for training and quality purposes.

Yes. We’ll need the written instructions of all the plan owners and the plan documents. To make sure we only deal with the plan owners, we’ll also ask for evidence of identity such as bank statement or copy driving licence. The confirming your identity leaflet will give you more information about this process.

If you have a pension plan, you can currently start taking your pension at anytime after 55 (age 50 for offshore pension plans). If you belong to a pension scheme, you will need to deal with the scheme administrators or if this is your own plan, call us for more details of your options.

Monday to Friday 9am - 5pm, excluding Bank holidays.

We may record or monitor calls for training and quality purposes

You may also want to consider the alternative choices available under your plan detailed in the Understanding your choices section.

If you want more information about the plan, please talk to your adviser or call us we’ll be pleased to help. If you haven't got an adviser, here are details on how you can find one.

Monday to Friday 9am - 5pm excluding Bank holidays.

We may record or monitor calls for training and quality purposes.

You can let us know your change of address by calling us.

The links to third party external sites are provided for the convenience of our website visitors only. Zurich is not responsible for the content of these external sites and does not necessarily endorse the views or agree with the information held on these sites.

You may have been thinking about what to do with your plan, this section will help you understand the choices you have. You might also want to look at the free and impartial guidance given by MoneyHelper on their website (Zurich is not responsible for the content of external websites).

Your circumstances and needs may have changed since your plan started and you should also be aware that the investment strategy of the Zurich with-profits funds has changed over the years. Your adviser will be able to help you decide whether the plan still meets your needs.

Like many other with-profits funds, the Zurich funds don’t invest in equities to the extent they did before the stock market falls in 2000-2002. The funds are now invested significantly in fixed and variable interest investments and have limited exposure to shares.

We will let you know each year how the fund is invested for your plan.

Zurich aims to pay a value that is fair to you and to the other policyholders remaining in the fund whenever you end your plan. There is no specific penalty for ending a life plan early. Some investment bonds have a fixed charge where withdrawals are made within the first five years of the investment.

A market value reduction (MVR) could apply if you take benefits before any MVR free date shown on the yearly statement or the bonus statement. However, we are not currently applying an MVR when investments are taken out of either of our unit linked with-profits funds. Ask us for a value of your plan now and at maturity to make a comparison before you decide what to do. If you’re not sure, ask an adviser.

This depends on the type of plan you have:

  • Pension plans cannot be normally be cashed in, although it’s possible to take some of the benefits as tax-free cash when you buy retirement income. They can be transferred to other providers.
  • Life plans and investment bonds were often issued as a cluster of individual contracts which can be cashed in separately. If your plan is being used as security for a loan, we would need the lender’s agreement.
  • Investment bonds also allow partial withdrawals where you can take some money from each cluster.

Taking money from your plan can create an income tax liability. There is a difference in the tax treatment of withdrawals between cancelling clusters and taking money from each cluster. You should seek advice if you're not sure which method is best for you.

Yes, you can usually move your investment into other funds. If you’re making regular payments you can invest future payments into other funds. The with-profits fund is no longer open to new money so if you switch out, you won’t be able to switch back in.

Different unit-linked funds invest in different types of assets, so you should consider the level of investment risk you are comfortable with. These funds do not smooth investment returns, so if the value of the investments fall, the value of your policy falls at the same rate. You also need to take into account the value of any guarantees you might lose. We recommend you seek advice if you are considering this option.

Yes. Plan administration charges and the cost of providing any life cover or other plan benefits would continue to be met by cancelling units. This may mean your final plan value could reduce and eventually stop without a value.

If you wanted to restart payments, the with-profits fund would no longer be available. For life plans, restarting payments would only be allowed within 13 months if you repaid all the payments missed.

Yes. On yearly statements we tell you what the transfer value is at that time. Values aren’t guaranteed and can change daily. If you transfer your plan on the selected retirement date any market value reduction would not apply. Your selected retirement date is shown on the yearly statement or the bonus statement.

Some pension plans started before 1996 may incur a charge if you take benefits or transfer your plan earlier than the date you selected. On these plans, the plan charges were high in the early years and the amounts allocated to plans from regular payments increased in later years. Ask us for illustrated maturity values and make sure you understand the value of guarantees before you decide to transfer.

You should also take account of any set up charges for a new plan. We recommend you seek advice if you are considering this option.

Yes. We can make regular payments from your investment bond either as a fixed amount or as a percentage of the bond value. Withdrawals greater than 5% of the amount(s) invested may create an income tax liability. Your yearly statement tells you whether or not we might apply any MVR.

If you want more information about the plan, please talk to your adviser or call us – we’ll be pleased to help. If you haven't got an adviser, here are details on how you can find one.

Monday to Friday 9am - 5pm excluding Bank holidays.

We may record or monitor calls for training and quality purposes.

The Questions you may have about your plan section may help to answer some questions you may have about your plan.

The links to third party external sites are provided for the convenience of our website visitors only. Zurich is not responsible for the content of these external sites and does not necessarily endorse the views or agree with the information held on these sites.