Norwich Union has announced details of its 2006 bonus rates and payouts, and holders of maturing endowment policies will be disappointed to see their payouts cut.

Holders of a typical 25 year endowment mortgage which matures this year will see a payout of 4% less than last year’s equivalent.

The insurer, Britain’s biggest, said that lower expectations of future investment returns meant that endowment payouts were likely to continue to decline.

Norwich Union has around 900,000 endowment policy holders, with 46,000 policies due to mature this year. The latest estimate is that around 72% of policies are in danger of shortfall.

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