View more on these topics

Wesleyan cuts payouts despite 17% fund return

Wesleyan Assurance is reducing payouts despite a return of 17.2 per cent on the with-profits fund in 2003.

The company says it has more than four times the risk capital margin needed under the new realistic reporting regime.

Conventional life and pension policies will see cuts of 0.25 per cent in the annual bonus on the sum assured and 0.75 per cent for life policies and 0.5 per cent for pensions on attaching bonuses.

Annual bonuses on unitised with-profits products are unchanged.

Payouts will fall by between 3 and 6 per cent on life policies and between 6 and 15 per cent on pensions compared with a year ago.

However, despite the reductions, the payout on 25-year endowment taken out by a male aged 30 next birthday with a premium of £50 a month will rise slightly to £73,128, up from £73,075 at the start of the year. A male paying £200 a month into a 20-year pension and retiring at 65 will receive £156,368, down from £171,263.

Appointed actuary Tim Pindar says: “Our relative financial strength compared with other companies has allowed us to avoid selling equities at the bottom of the market.

“However, future investment returns are expected to be lower than those in the past as inflation is low. This means we have to be cautious about how much we can increase guaranteed benefits over coming years.”


Exeter promotes two to board

Exeter Friendly Society has made two new appointments to its board of directors with Michael Dunford becoming actuary and operations director and Mark Moreland taking on the IT director role.Dunford will also take responsibility for customer support, claims and hospital liaison functions and will continue helping to develop new products for both the UK and […]

Wise Investment – Wise Active Growth

Type: Oeic fund of funds Aim: Growth by investing in collective investment funds Minimum investment: Lump sum £1,000 Investment split: 30% UK equity, 21% UK growth, 20% managed mix, 10% European equity, 10% UK equity income, 8% Japanese equity, 1% cash Isa link: Yes Pep transfers: Yes Charges Initial 4%, annual 1.65% Commission:Initial 3%, renewal […]

Massive PI run-off excess shocks ex-DBS member

A former DBS member has been stunned by a 10-fold increase in his professional indemnity insurance excess in the two years since he left the Sesame subsidiary. York FM director Graham Carver contacted DBS after leaving to find out where he stood and was told he would not need PI run-off cover. At that time, […]

Life policyholders facing penalty in IHT crackdown

Life insurance policyholders with money held in trusts could be penalised by the Chancellor&#39s latest measures to toughen up on inheritance tax avoidance. Gordon Brown&#39s 2004 Budget includes tighter restrictions for investors using complex double-trust schemes to escape IHT. The schemes allow an investor to carry on living in their property while having given the […]

Inheritance tax when it is relevant

Neil Jones is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. A trust can offer significant advantages when an individual is […]


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