LONDON (Reuters) - Hundreds of thousands of pension savers and life bond holders with Friends Provident and Aviva unit Norwich Union face hefty charges if they wish to leave their funds early, reports the Financial Times.

The paper says that some of the charges could reduce the value of people's policies by up to 22 percent.

The two companies, along with a number of other big insurers, removed the charges, known as market value reductions (MVRs), more than a year ago when investment conditions across the funds were more stable, but now they are reinstating them, reports the paper.

John Lister, chief actuary at Norwich Union, said in a statement Tuesday: "Since the beginning of the year we have seen equity markets, commercial property and corporate bonds fall significantly in value.

"As a result we have reviewed the situation and have decided to introduce MVRs for policyholders who have unitised with-profits policies and who wish to make a partial or total withdrawal."

Friends Provident could not immediately be reached for comment.

(Reporting by Ben Deighton, )