What is an MVR?
An MVR is a Market Value Reduction (MVR). It may also be called a Market Value Adjustment (MVA) or Surrender Value Reduction (SVR).
Put simply this will reduce the surrender value of your policy to reflect exceptionally poor investment conditions. The purpose of the MVR is to ensure that both members that keep their policies and members that surrender their policies are treated fairly. This only impacts members who are surrendering their policies whilst the MVR is applicable. If you are considering surrendering your policy, please contact our Member Services team on 01689 891454 to discuss your options.
Why has it been applied?
The last time MVRs were applied was from October 2008 to September 2009 as a result of the global financial crisis. The recent downturn in the financial markets linked to the COVID-19 pandemic has triggered the application of the MVR. As at 20th March 2020 the UK stock market had fallen by more than 30% since the start of 2020, whilst the Metfriendly With-Profits Fund has fallen by 10% over the same period.
Visit the With-Profits Fund page for more information on its performance.