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ProvMut equity ratio slashed to 10%

Norwich Union is has reduced the equity backing ratio of the Provident Mutual with-profits fund from 24 per cent to 10 per cent, saying the move is needed to meet underlying guarantees.

At the same time NU is also offering Provident Mutual mortgage endowment policyholders the opportunity to take advantage of future investment returns from the stronger CGNU with-profit fund.

The CGNU fund has a considerable higher equity backing ratio of 67 per cent. Provident Mutual policyholders who move will keep their guarantees.

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