Royal & Sun Alliance is closing its £12 billion with-profits fund to new business. It has denied that the move is because of financial strength concerns,
Existing policyholders will still be able to pay into the fund.
R&SA says the move reflects its view that the market will move towards managed unit-linked products.
R& SA UK life & pensions managing director Stephan Pater says: "Our decision to withdraw unitised with profits options from our products has been motivated by several factors, not least the market uncertainty surrounding with profits and the significant investment in time and capital needed to develop the with profits products of the future.”