With-profits policies have come in for much greater scrutiny and criticism than other types of product that have wiped out investors' savings, according to Liverpool Victoria's head of distribution Rye Mills.
Mills said that products such as split-capital investment trusts and structured products have not had the same scrutiny despite the fact that many investors had lost their entire investment.
While accepting that with-profits policies would not form as much of the market as they have done in the past, Mills suggested at one stage that a diversified portfolio might have been regarded as having several with-profits funds.
But he said there is still a case for with-profits from well-run life offices forming a core holding with other types of fund as part of an investment portfolio.
He said: “I want to comment on the coverage that has appeared in relation to other types of asset classes that have performed exceptionally badly. There has been a disproportionate amount of interest in with-profits if you look at the acreage of print coverage and compare it with that of split caps and precipice bonds. I find it difficult to equate it with investments that have completely destroyed capital value.”