With-Profits Bonus Declaration February 2024

In 2023, our globally diversified With-Profits Fund produced a positive return in changeable, and fast moving, economic conditions.

As a result of this performance, I’m pleased to announce that this year, Annual Bonus rates have either been increased or maintained at the same level as we declared last year, which will continue to add to the guaranteed benefits of customers’ plans. Most customers will benefit from increases in Final Bonus rates, so will see an increase in the value of their plans compared to last year. 

I’m also delighted to announce we’ve shared additional money with some of our With-Profits customers. The amount being shared is £1 billion. Some of our With-Profits customers invested in our With-Profits Sub Fund have received a share of this additional money. You can find out more on our website at pru.co.uk/aboutadditionalsurplus

How we look after your money

We invest your money in the Prudential Assurance Company Limited With-Profits Fund, which is the largest and one of the financially strongest with-profits funds in the UK. The size and strength of our Fund allows us to invest in a very wide range of assets and individual companies.

Our aim is to secure the highest total return for the Fund (after any tax and investment expenses), while maintaining an acceptable level of risk and protecting you, our With-Profits customers.

How our Fund performed

The table below shows the returns for The Prudential Assurance Company Limited With-Profits Fund over the last 1, 5 and 10 years.

Performance of our With-Profits Fund in the 1, 5, 10 years to 31 December 2023


1 year Fund return %

5 year Cumulative
Fund return %

10 year Cumulative
Fund return %

5 year Annualised Fund return %

10 year Annualised Fund return %

Prudential With-Profits Fund (after tax)






Prudential With-Profits Fund (before tax)






Source: Prudential. These values are before charges and the effects of smoothing and are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers. Fund returns do not include the additional surplus shared as part of the PAC Final 2020, 2022, 2023 and 2024 bonus declarations.

For investments in our With-Profits Fund, the value of your plan depends on how much profit the Fund makes and how we decide to distribute it. The bonuses we’re adding to your plan won't reflect the performance of the underlying fund exactly because of, for example, charges, the effects of smoothing and any applicable tax. You can find more information in your yearly statement.

We can’t predict the future so past performance isn’t a guide to future performance. The value of your plan can go down as well as up so you might not get back the amount you put in.

How we set our bonus rates

For Annual Bonus rates, we look at the economic outlook and the returns we expect our investments to earn in the future. The Annual Bonus rates we've announced show the With-Profits Fund has the investment flexibility to cope with market volatility and continue to deliver competitive overall returns. 

For Final Bonus rates, we aim to ensure the total return on customers’ plans represents a fair share of the Fund’s profits earned over the lifetime of their plans. This is after taking into account, for example, charges, the effects of smoothing and any applicable tax. 

The additional money shared is, where applicable, reflected in our final bonuses from this year. Your Final Bonus isn’t guaranteed. You shouldn’t expect to get additional money in the future. There’s also a chance we might have to take back the additional money distributed this year (or in previous years) in future, if we needed it to protect the interests of all our customers and the financial strength of our With-Profits Fund. Unless something very unusual happened, we wouldn’t expect to have to do this. 

How we apply a Market Value Reduction

Sometimes, we may need to apply a Market Value Reduction if you decide to take money out of your plan. This will depend on the type of plan you have. This will reduce your fund value, but we’ll do this to make sure you get a fair plan value.

In 2024 we'll continue to manage the Fund in a prudent manner, just as we always have. 

Thank you for investing with us.


Clive Bolton
Chief Executive Officer, M&G Life


Related content

Bonus Declaration FAQs February 2024

Find out who is affected by the bonus rates announcement and how you can find out if it affects you.

With-Profits FAQs February 2024

The frequently asked questions give high level information about investments in With-Profits.

Annual Bonus Rates Table February 2024

View our Regular/Annual Bonuses that will be added to our With-Profits range from 1 April.

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