RNS Number:7905D
Norwich Union PLC
14 January 2000


2000 BONUS DECLARATION

Norwich  Union breaks records yet again with a  projected
#1.4 billion payout to some 70,000 customers in 2000.

Group   chief   executive,  Richard   Harvey   commented,

"Customers  whose  policies mature in 2000  are  enjoying
excellent  returns well above the rate of inflation.  For
example  a  25  year  endowment has  a  return  of  12.3%
compared to inflation of 5.1%"

"By  smoothing out the volatility of market  fluctuations
and  investment returns through bonus declarations, with-
profit  policies  continue  to  give  policyholders  good
returns  while  reducing the risk.   They  are  an  ideal
stepping   stone  between  deposits  and   equity   based
investments."

Payouts in 2000
Payouts on unitised policies remain strong with increases
in  the  additional bonus scales for all years money  has
been invested.

For  a  man aged under 75 investing #25,000 in a  Norwich
Union  with-profits bond five years ago, the payout would
be  #40,648.  This represents a yield of 10.2%.   For the
same  investment  ten  years ago,  the  payout  would  be
#59,104, representing a yield of 9%.  Inflation over  the
period was 2.8% and 3.5% respectively.

For  a  man  investing #200 per month  into  a  ten  year
unitised personal pension plan the payout  at age 65 will
be #40,693, representing a yield of 10.2% (1999:10.1%).


Annual bonus rates
Annual bonus rates have been reduced for 2000 as part  of
an  ongoing programme of managing bonus rates to  reflect
future lower investment returns.

The  rates  for  the current series of unitised  policies
until further notice will be:

Savings                  5.0%           (1999: 5.5%)
Pensions                 5.5%           (1999: 6.0%)

The rates for conventional with-profits policies at
31/12/99 are:

Savings                     1.5% on guaranteed benefit
                                       plus
                            2.75% on attaching bonuses
                              (1999: 2.0% and  3.25%)
Pensions                    1.0% on guaranteed benefits
                                       plus
                            1.75% on attaching bonuses
                               (1999: 1.5% and 2.5%)

Richard Harvey concluded: "Against a wider background in
recent years of lower interest rates and low inflation,
our view of the longer-term investment outlook has led us
to further adjust annual bonus levels. We believe annual
bonuses need to be managed at a realistic level, which
allows us the investment freedom to maximise the overall
investment returns which can be passed on to
policyholders through the payment of  additional bonuses."
                            

Press enquiries:    Liz Maw            01603 682 264
Analyst enquiries:  Geoff Shaw         01603 683 492

END
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