With-profits policyholders received a fillip this week with both Norwich Union and Scottish Widows cutting MVRs on its funds.Following a second year of double digit returns from equities, Widows has slashed MVRs across its unitised with-profits pension and assurance policies from 9 per cent to an average of 3 per cent. NU has cut MVRs on all policies taken out between 1998 and 2001 across its different with-profits funds by between 15 and 40 per cent. Scottish Widows with-pro- fits fund returned 15 per cent over the past 12 months but contracts maturing this year will offer lower returns than those maturing last year. Dennehy Weller managing director Brian Dennehy says although this is good news for policyholders, it remains very difficult for advisers to recommend the asset class. He says: “Without the regulatory intervention, with-profits would be in pretty rude health.” Widows actuarial director Adrian Eastwood says: “The first half of 2005 has seen a further rise in investment markets, with the values of with-profits increasing.” NU senior actuary David Riddington says: “We hope this downward trend MVRs continues but, of course, it depends on the markets. We will continue to actively review rates.”
The group insurance division of Canada Life launches its employee assistance programme service.The package, provided by ICAS, will be offered to existing clients as an extension of the group income protection scheme as well as new business clients.The EAP package offers a confidential and unlimited personal support service staffed by qualified counsellors, up to six […]
Endowment mortgage claims management companies are to be regulated in the upcoming Compensation Bill although it is unclear which body will take responsibility. The Department for Constitutional Affairs says it has made provision to legislate later this year in a Bill intended to tackle the compensation culture but it will not speculate as to whether […]
Credit Suisse Asset Management has introduced the Incubator fund, which is believed to be the first limited-issue fund of funds in the UK.
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The work and pensions secretary Esther McVey has been urged to intervene to protect the pensions of over 200,000 current and former Barclays staff as the UK bank reorganises its pension scheme. Concerns have been growing from the bank’s members over the decision of Barclays to transfer responsibility for pensions to the international and investment banking arm […]
The Financial Services Compensation Scheme is predicting that life and pensions advice compensation payouts will fall over the next year. In its budget for 2018/19 released today, the FSCS notes that while the three-year average for compensation claims over life and pensions intermediation is £83.8m, a falling trend from a peak two years ago should […]
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