It’s clear that Asia is still the focus of attention for the Prudential and despite the AIA fiasco, CEO Tidjane Thiam still seems to think it was a good idea. Better than expected profits and a lower cost of the failed takeover of AIA allowed Prudential to raise half-year dividends by 5 per cent. (more…)
It now looks like Prudential will launch the £14bn rights issue it needs to buy AIA by next week. The FSA had blocked purchase of AIG’s Asian Insurance arm (AIA) due to concerns the deal would leave Prudential with insufficient capital to satisfy IDG rules. (more…)
Standard Life have announced the value of the inherited estate has fallen by 80 percent and may suffer further losses if stock markets continue their slide. The company also announced that surrender and transfer values on many of its with profits plans would be cut by up to 8 percent. (more…)
LV= is cutting annual bonuses on with profits by up to 4 percent as policy values fall an average of 1.4 percent. However £84.5m in bonuses will be added to LV= with-profits policies and the company was keen to stress their with-profit fund performed well, having much smaller falls in policy values compared with some unit-linked products. (more…)
More bad news for endowment mortgage and other with profits customers as Scottish Widows announce their latest bonus rates. The £14 billion with-profits fund fell by 17.5 percent last year and customers can expect shortfalls and bonus rate cuts (more…)
Aviva announced that Norwich Union’s reattribution offer to policyholders would be cut due to continued volatility and uncertainty in the financial markets and a fall in value of the CGNU Life and CULAC inherited estates. (more…)
Friends Provident with profits policyholders had a shock today when drastic bonus rate cuts were announced. The cuts are a response to an estimated minus 10.5 percent gross investment return on the With Profits Fund last year. (more…)
A survey found that returns on endowment policies were outperformed by the stock market and even cash held on deposit. (more…)
Hot on the heels of Legal & General’s bonus cuts, Standard Life announced a double whammy for their 2 million with profits customers. Final bonuses will be cut by up to 13 percent while exit penalties in the form of Market Value Reductions (MVR’s) will be increased. (more…)
Norwich Union have announced they will introduce exit penalties in the form of Market Value Reductions for with profits policyholders. (more…)