With-profits puzzler
Article Abstract:
Annual bonuses for United Kingdom endowment policies may fall or remain stable in 1998, though maturity values may increase. Insurers tend to retain funds in good years to help smooth returns in poor years and to pay good bonuses when policies mature. Compensation for pensions mis-selling will cost life insurers some 4 billion pounds sterling and this is not likely to affect maturity bonuses for endowment policy holders to any great extent. Companies with large liabilities tend to possess large orphan assets which can be used to meet those liabilities, though policyholders in some companies could be affected.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Third-hand policies
Article Abstract:
UK investors will have a greater selection of second-hand endowment policies following a decision by Beale Dobie to buy back policies previously sold. Other companies are also doing this. Investors should note that costs are involved each time policies are bought and sold, and they can obtain better value by retaining policies until they mature. Bonus levels have also been reduced and may be further reduced unles there is a rise in UK inflation levels.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Poorer and poorer second-hand deals
Article Abstract:
Returns from second-hand endowment policies in the UK could drop for some investors despite speculation over special bonuses. Pearl Assurance is paying such a bonus related to its orphan estate. demand for these policies has risen due to hopes for a bonus. Many insurers are reducing bonuses and windfall bonuses may not compensate for these reductions. Prices of the policies are rising and investors cannot be certain that a gamble for a bonus will pay.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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