Norwich Union is to introduce a five-year money back guarantee on all new with-profits fund investments in its portfolio investment bond.
The change means policyholders are guaranteed their original investment back on the policy's fifth anniversary, regardless of whether markets go up or down and applies to investments made up until the end of the year.
It is also applicable to offshore with-profits investments in the NU international core fund bond and international with-profits bond. An extra 1.5 per cent allocation rate is also being continued on all new investments in the portfolio bond.
NU head of investment product development Neil Davies says: “We are further improving our with-profits bond offering with a guarantee to return investors' money after five years regardless of what happens to the stock market. We understand that capital security is a concern for some investors and we believe this new guarantee will provide them the reassurance they need.”