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With-profits transparency for whole Britannia range

Britannic Group will extend its model for transparent with-profits across its entire product range from the new-year.

Following the system set by Britannic Retirement Solutions&#39 with-profits annuity in January, the group says it will remove the lack of transparency of conventional with-profits products by giving all policyholders annual statements outlining performance and disclosing the amount reserved for smoothing and charges.

The change will affect all Britannic Group&#39s singleand regular-premium with-profits policies, plus its endowment policies.

The new-style with-profits practice will also feature annual audits by an independent actuary to double-check that the funds are sticking to its rules.

BRS argues that IFAs cannot match clients&#39 risk profiles with their required returns on a with-profits product unless they are fully aware of returns and deductions.

Britannic Group head of group strategy and partnerships Richard Goyder says: “The statements will be very much like those for unit-linked policies. Britannic does not intend to make a profit from smoothing. We are prepared to lead the market by being transparent and believe this is the way the rest of the market will go, especially those funds which feel they are strong enough to open themselves up to transparency.”

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