View more on these topics

With-profits bonus battle

Prudential, Legal & General and Liverpool Victoria are vying to prove their market-leading credentials.

With-profits providers are battling each other to prove they generated the best returns for policyholders after bonus declarations from Prudential, Legal & General and Liverpool Victoria.

Pru says it has increased year-on-year payouts by more than 10 per cent across the majority of its with-profits policies and the company has maintained its annual bonus rate.

Legal & General says it generated an 11.2 per cent return for customers on its with-profits fund and announced 596m in with-profits bonuses for 2006.

Liverpool Victoria’s with-profits fund also posted a return of 11.2 per cent and the friendly society says it will be maintaining its annual bonuses for all with-profits life policies for the second year running.

Pru says its life fund generated a 12.4 per cent return in 2006, with an investment performance of 63.8 per cent over five years.

But Liverpool Victoria says its policyholders with maturing 25-year conventional with-profits life policies are at least 14,413 better off than similar policyholders with other major with-profits providers.

For a man who has paid in 50 a month, Liverpool Victoria says it would pay out 63,905 compared with 49,492 from Prudential and 47,904 from Norwich Union.

Cazalet Consulting principal Ned Cazalet says: “On the investment front, the Pru has got some big market calls right and its tactical asset-allocation decisions have paid off big time, leading to massive investment outperformance relative to its peers, with the knock-on effect showing up in its market-bucking bonus payments – we score it nine out of 10.”

Cazalet Consulting gave Liverpool Vic’s with-profits fund a 10 out of 10 rating.

Legal & General says over five years its fund has returned 55 per cent, beating the FTSE Allshare.


Name and shame the lawbreakers

Open letter to Walter Merricks, Chief Ombudsman, Financial Ombudsman ServiceI was shocked to read your comments in the February 8 edition of Money Marketing that “the top 12 firms are responsible for over half of the complaints received to the FOS and that these firms showed no ambition to improve performance and no willingness to […]

Fair and square

What changes to a firm’s systems and processes will be necessary to show compliance with the FSA’s treating customers fairly principles from April? Kenneth Underhill, a partner, and Robbie Constance, a barrister, at Reynolds Porter Chamberlain, outline the challenges.

Sesame launch retirement planning seminars

Sesame is to host a series of 21 technical seminars to provide advisers with an insight into pre and post-retirement markets. The seminars will be held at locations across the UK until March 15, tackling a range of pension-related issues, including an update on pensions post A-Day, developments in the Sipp market and changing consumer […]

Standard adds gift plan trust to IHT range

Standard Life has added a discounted gift plan absolute trust to its range of inheritance tax planning vehicles.The company withdrew all its trust arrangements following changes to the regime in last year’s Budget.The DGP is geared towards people who want to gift regular money to a trust as part of their estate planning strategy while […]


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