Pension pledges 'cost millions'
Article Abstract:
It is understood that over 50% of life insurance companies in the UK are loosing money from guarantees made to customers in the 1970's and 1980's. Companies including Norwich Union, Scottish Widows, Friends Provident, Guardian Financial Services and Family Assurance are said to be facing exceptional charges totally hundreds of millions of pounds as a result of these guarantees that they are unable to live up to. The guarantees revolve around the annuity incomes that would be received by people, the companies promised that these would not fall below a certain percentage of around 7.5%. However the insurance companies can not find assets yielding enough to back these guarantees and are having to set aside sums of money to deal with the problem.
Comment:
UK: It is understood that over 50% of life insurance cos are losing money from guarantees made to customers in 1970's & 1980's
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Turmoil halts the IPO gravy train
Article Abstract:
The international financial crisis has had a negative impact on initial public offerings (IPOs). New issue activity reached a record $30 billion in the fourth quarter of 1997, and it had been anticipated that a new record would be set in the fourth quarter of 1998. However, flotations are now being postponed, with particular problems with offerings from banks and insurance companies. It is estimated that some $20 billion of deals have been pulled recently. Some observers believe that there is a great deal of pent up demand, so activity will rise to very high levels when the market revives.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Friends grabs L and M for 744 million pounds sterling
Article Abstract:
London and Manchester (L and M) has been acquired by Friends Provident, in a deal which involves a listed company being acquired by a mutual. Some 700 jobs could be lost as a result of the merger. London and Manchester had an outdated image of door-to-door collections, at a time when supermarket and phone banking have become common. L and M decided that it was unlikely to be able to continue to be independent, and chose its own partner rather than waiting to be acquired.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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