View more on these topics

Top life offices reveal scale of policy shortfalls

Pearl Assurance and Royal & Sun Alliance have admitted 40 and 20 per cent of their endowment policies respectively are in the red category.

But three giant IFA life offices, Scottish Amicable, Scottish Widows and Standard Life, together with Prudential&#39s direct operation, all claim their red category endowments are in single percentage figures.

The admissions put the spotlight on leading IFA life offices with a large number of endowments on their books, including Legal & General, Friends Provident, Norwich Union, Axa Sun Life and Eagle Star. These offices refuse to reveal publicly how many of their endowments are likely to underperform.

Money Marketing revealed last week that 40 per cent of the 10 million letters going out to consumers are understood to be in the red or “definite” risk category, with another 20 per cent amber or in “some danger” of a shortfall.

Pearl&#39s figures mean its endowment book matches the industry average, with another 20 per cent in the amber category and 40 per cent green or absolutely safe out of 140,000 policies.

R&SA admits to 20 per cent red and 40 per cent amber among its 600,000 endowments, while Prudential says 2 per cent of its 275,000 letters are red and 37 per cent amber.

Widows says it has 2 per cent red and 65 per cent amber out of a total of 260,000. Standard Life says it has only 11,000 policyholders or less than 1 per cent in the red category out of 1.2 million endowments. It says 530,000 or 44 per cent are amber.

Consumers&#39 Association senior policy adviser Mick McAteer says: “We suspect there is a serious problem with endowments.”


ScotMut sends out stakeholder action packs

Scottish Mutual is issuing a comprehensive marketing pack to more than 5,000 IFAs to help them prepare for stakeholder.The Time for Action pack promotes Scottish Mutual&#39s pre-stakeholder Universal pension contract and contains the information IFAs need to understand the Government&#39s current stakeholder proposals.The pack advises IFAs on setting up and running stakeholder schemes and also […]

Henderson Investors changes its unit trusts and exempt funds

Henderson Investors is bringing in a sea change to all of its 33 unit trusts and exempt funds.The company is to convert the funds into a total of 25 open ended investment companies (OEICS) in a staggered tranche of two OEIC umbrellas. The first group, consisting of UK and European funds will be available from […]

FSA pushes back FSAVC deadline

The FSA has put back the deadline for smaller IFAs to submit details of their review population for the FSAVC review. The deadline for IFAs which advised on or arranged less than 100 FSAVCs has been changed to September 15 from September 1, 2000, the same date as firms with 100 to 1,000 FSAVC cases. […]

Opponents close to blocking iX merger

The merger of the London and Frankfurt stock exchanges received another blow yesterday when it emerged opponents are approaching the support necessary to block the deal. A new survey from Bloomberg indicates 22 per cent of LSE shareholders will vote against the merger to create the iX Exchange when the vote occurs on September 14. […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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