§ Mr. Skinner
asked the Secretary of State for Trade if he will hold an inquiry into the question of life assurance companies releasing themselves from terminal bonus payments.
§ Mr. Clinton Davis
No. I am not aware of any withdrawal from contractual obligations. Life offices declare bonuses on with-profit policies from time to time as profits are made. Annual reversionary bonuses which remain fairly stable from year to year are most common, but some offices have in the last few years also provided terminal bonuses often related to capital gains. Some of these offices have recently decided that having regard to the market values of their investments it would be appropriate either to pay smaller terminal bonuses than previously or to discontinue them for the future.