View more on these topics

Some comfort for with-profits policy holders

Analysis by the Association of British Insurers finds that customers of with-profit policies are getting more returns than many other types of investor.

Using information from Standard & Poor&#39s and Money Management, the ABI finds that in August 2002, the worst performing maturing 10-year with-profits policy provided a return of 4.9% while the worst performing unit trusts investment during the same period provided a loss of 13.7%.

In August 2002, maturing 10-year with-profits policies showed an average rate of return of 6.4%, compared to 1.53% for the average unit trust. The bank or building society interest rate in August 2002 was 3.7%.

Furthermore, the average real rate of return (the average yield minus the rate of inflation) on a 25-year with-profits endowment has risen consistently over the last five years.


Abbey launches new ad campaign

Abbey National is launching a new TV advertising campaign starring actor and ex-pop star Martin Kemp. The aim of the ads is to extend Abbey National&#39s Trade-In offer, which promises to provide customers with a better deal than offered by competitors on their mortgage or current account, or give them £50. Gary Brown, Abbey National&#39s […]

CEBR predicts slower housing market for 2003

A fall in mortgage equity withdrawal will mean the consumer boom runs out of steam in 2003, predicts the Centre for Economic and Business Research. The CEBR forecasts consumer spending growth down to 1.1%, in contrast to 4.1% in 2001 and 3.4% in 2002. Mortgage equity withdrawal rose from 3.8% of consumer spending in 2001 […]

Co-op expands with two new members

Advantage Mortgage Services and Pavillion Securities have joined The Mortgage Distributors Co-operative taking the total membership to nine companies. Between them, MDC members including The Mortgage Operation, Pink Home Loans, ICMG and Genesis Home Loans expect to distribute £7bn worth of completions in 2003. The MDC is not actively recruiting new members but it is […]

Norwich Union lowers bonus rates and payouts

Norwich Union has announced new regular bonus rates and payouts for with-profits policies for 2003 which are lower than those in 2002. The insurance giant says the decrease is a direct result of the continuing poor stock market environment. The policy provider points out that even with reduced payouts, maturing policies are still providing competitive […]

Building long-term relationships

Call us old fashioned, but we want to get to know you personally. That’s why we give you a named case manager and underwriter to look after all your cases from start to finish. Your underwriter will happily give you their number, so you can ring them directly with any questions you have. And your […]


News and expert analysis straight to your inbox

Sign up