View more on these topics

&#39Top five firms to take 70% of life and pensions&#39

The top five players in the life and pension market will increase their market share over the next five years to 70 per cent from the present 50 per cent, according to consultancy Oliver Wyman& Company.

The top five providers are likely to change from the current composition because of accelerated consolidation in the marketplace, says Wyman in a series of predictions published this week.

The consultancy says providers which aspire to join this exclusive club will have to resort either to buying distribution by investing in IFA firms or by raising commission and accepting tighter margins.

The top five have an inherent advantage, says Wyman, because they have a strong brand name to build upon. They will focus on building this brand name in the future as well as improving customer service, it says.

Oliver Wyman senior partner Richard Surface says it will be a “flight to quality” rather than concerns over solvency margins which will dictate who will be the winners and losers.

Surface says: “The pace of consolidation will accelerate, with the top five players increasing their market share of new business from around 50 per cent currently to around 70 per cent over the next few years although there is likely to be change among the membership of the top five.”

Norwich Union spokesman Ian Beggs says: “We expect a lot of consolidation because of the 1 per cent world and we expect a lot of companies to pull back from selling 1 per cent products. In the current environment, what you need to have is scale and a strong brand to survive.”

IFA Johnston Financial Services director Johnny McGlynn says: “The number of providers around will become fewer. We will look to deal with six to seven top firms who will probably pick up market share.”


Added frequency for Standard declarations

Standard Life may introduce more frequent bonus declarations on its conventional with-profits products amid continuing controversy surrounding its bonus policy.It says criticism of its payouts does not take account of the variety of with-profits it has on its books.The bonus rates on stakeholder with-profits and with-profits bonds are altered daily and these have been reduced […]

Baillie Gifford sees opportunities for value on both sides of Atlantic

Recent weaknesses in the US stockmarket have created increasingly attractive investment opportunities in selected sectors and stocks, according to fund manager Baillie Gifford.It points to the performance of the S&P 500 companies, which showed increased profits this quarter year on year for the first time in six quarters, although it says that some companies are […]

Strikers win rethink by Caparo on pensions

The first UK workers to strike after their final-salary scheme was threatened have won their battle to keep their pension intact, with their employers reinstating the scheme.Steelworkers at the Welsh Caparo Steel Group, owned by Labour peer Lord Paul, started a series of one-day strikes after the company threatened to downgrade its finalsalary scheme.The strikes […]

Chelsea launches new step rate bond

Chelsea Building Society is launching a step rate bond on September 23 with the offer of three fixed rate periods from one to three years. The fist fixed rate period offers a bond with an interest rate of 3.95 per cent until November 2003. The second fixed rate period offers a bond with an interest […]

Image courtesy of Stuart Miles at

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm