View more on these topics

ScotAm exits endowments as sales continue to slide

Skandia&#39s London marathon team all made it round the course last weekend, raising around £60,000 for charity Get Kids Going.

The team of 32 included Money Marketing journalists James Daley and Rachel Stevenson, runners from Fidelity and Threadneedle and IFA Torquil Clark pensions development manager Tom McPhail.

McPhail completed the course in 3hrs 43mins while Skandia pensions marketing manager Peter Jordan, who organised the team and was champion fund-raiser, made it home in a personal best of 4hrs 21mins. Jordan raised an additional £7,000 by having his head shaved before the marathon.

Scottish Amicable is pulling the plug on its range of endowment mortgages with immediate effect following plummeting sales.

The company, a subsidiary of Prudential, was one of the biggest providers of endowment mortgages.

The move follows two years of sliding sales which have seen ScotAm&#39s endowment business from IFAs fall to £3.46m last quarter from £14.35m in the first quarter of 1999.

It joins its parent company and other insurers, including Legal & General and Scottish Equitable, in withdrawing from the endowment market.

ScotAm says the move ref-lects the shift in the marketplace away from endowments to repayment mortgages following the discovery by millions of borrowers that their policies may fail to pay off their mortgage at completion of the term.

Council of Mortgage Lenders figures show endowments now account for only 7 per cent of all new loans compared with around 60 per cent eight years ago.

During the same period, repayment mortgages have rocketed in popularity and now make up 80 per cent of new loans from 20 per cent in 1993.

ScotAm says it aims to focus on selling protection insurance to repayment borrowers but remains committed to the mortgage market.

Public relations manager Darragh Leeson says: “We are an IFA-supporting company which concentrates on providing products that independent advisers are actually able to sell. We will now move with the market and focus on alternative product solutions.”

Recommended

Backdate to the future

I started last week to look at the major developments concluding the case of Preston v Wolverhampton, which potentially opens the floodgates for many hundreds of thousands of part-time workers to claim a backdating of their pension rights to the date they joined service or back to 1976, whichever is the later date.Noting that the […]

Women still &#39significantly&#39 behind men in private pension ownership

Working women need to plan their finances more effectively, particularly their pension arrangements, according to a report from the FSA.The report, Women and personal finance: the reality of the gender gap, shows women are less likely than men to have taken out a private pension.Only 27 per cent of married women have a pension compared […]

F&C Ventures bought out by management

Foreign & Colonial&#39s private equity arm F&C Ventures has been bought by its management for an undisclosed fee.The operation, which has funds under management of about £500m, will be renamed Graphite Capital.The buyout follows Hypover- einsbank&#39s sale of its 90 per cent stake in Foreign & Colonial earlier this year.The firm manages six funds, of […]

Pharmaceuticals are the future for iShares

Pharmaceuticals are the right medicine for iShares as it brings in the iBloomberg European pharmaceuticals fund.European pharmaceuticals is an exchange traded fund aimed at experienced investors looking for growth.The fund will track the Bloomberg European pharmaceutical index. This consists of 29 companies which include Glaxosmithkline, Merck, Roche Holdings, Astrazeneca and Novartis.This is the seventh exchange […]

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