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With-profits endowments see 9% falls

Maturity values for 25-year with-profits endowments are down by an average of 9 per cent, according to Money Marketing Online&#39s With-Profits Survey 2002.

Mutual insurers generally provide the best returns. Liverpool Victoria is the best performer this year, with a £20 a month investment yielding a maturity value of £45,139 over 25 years. Royal London, Wesleyan and Standard Life also feature in the top six.

Worst performer is Scottish Equitable, where a £20 a month plan has a maturity value of just £24,830. Scottish Widows and Prudential also feature in the bottom 10 over 10-year and 25-year terms, whether or not the terminal bonus is taken into account.

The average maturity value on a 25-year plan this year is £34,371, down from £37,765 in 2001. For 2000, the figure was £40,152.

The survey, carried out in association with consulting actuary KPMG, also shows a wide disparity between the best and worst-performing with-profits pension funds.

Liverpool Victoria again tops the charts, with a monthly premium of £25 paid into a policy taken out before age 45, with retirement at 65, paying out £41,443. The worst performer, AMP NPI, pays out less than half that figure at £19,998.

A total of 83 insurers were sent questionnaires but 28 did not participate.

Money Marketing new media content director and editor of the survey Sandra Grandison says: “The survey shows that with-profits endowment insurances as a whole have performed less well this year than in 2001 or 2000.

“However, there are wide variations in performance between providers and investors should not take any decisions on investments in this sector without seeking proper independent financial advice.”

•Full report at


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