View more on these topics

F&C devises strategy for liabilities

Foreign & Colonial is offering a service to help life offices overcome the black hole of liabilities created by offering guaranteed annuities.

F&C says the problem arises because the ultimate size of the guarantee is unknown. It is offering a tailor-made service to give life offices a portfolio designed to compensate for interest rate movements.

F&C says it will give life offices a specific analysis of their liabilities and their risk characteristics. It will then advise on a portfolio made up of bonds and interest rate instruments to offset liabilities arising from guarantees.

The investment manager says many life offices have yet to impose measures to counterbalance the effect of further falling interest rates.

It says its service offers insurers greater freedom than current options, which it says are crude, and that most companies are put off by the cost of managing the cost of guarantees in-house.

F&C stresses it cannot make the liabilities disappear and that life offices still have to set aside reserves.

Product development director Derek McLean says: “Many UK life insurance companies are in the position of having sold a number of pension products that contain guaranteed annuity options but not having an effective hedge against interest rate movements.”

Recommended

West Brom becomes mortgage broker

West Bromwich Building Society is converting its sales team into mortgage brokers to sell from its own newly created panel of lenders. The society is also believed to be looking to buy an IFA operation. The broker service will be available through West Brom&#39s branch network. It will aim to advise borrowers outside its mortgage […]

UCB Home Loans – 2 Year Discount Option 1

Wednesday, 14th March 2001.Discounted term: Two years.Discount: 1.65 per cent.Payable rate: 6.69 per cent.Minimum loan: £25,001.Maximum loan: Up to 85 per cent of valuation subject to a maximum of £500,000.Income multiples: 3.25 times principal income plus second or 2.75 times joint.Arrangement fee: £295.Redemption fee: 100 per cent of discount received in year one, 80 per […]

Wider reach for venture capital fund

Friends Ivory & Sime is to bring a traditionally institutional fund structure to the IFA market with a new venture capital investment trust. The Public and Private Primary Capital, or 3PC, investment trust will open on Monday. It aims to raise up to £150m and will close on April 23 or earlier if it reaches […]

T&C toolkit to aid IFAs

The Financial Services National Training Organisation will be offering a training and competence toolkit to IFAs from next month. The kit is a joint Government and employer initiative developed by financial services trade bodies Aifa, Autif, the Chartered Insurance Institute, the Institute of Financial Planning, the Institute for Fiscal Studies, the LIA, Limra, Sofa, the […]

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com