With-Profits Policy

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Related to With-profits: terminal bonus, With profits policy

With-Profits Policy

A chiefly British and Commonwealth term for a participating policy.
References in periodicals archive ?
July 16, 2001: Equitable announces it is reducing the value of with-profits policies by around 16pc.
As a result, a person with a with-profits pension maturing this year into which they have paid pounds 200 a month for 20 years will receive a pension "pot" of pounds 117,469, against pounds 119,401 from a similar policy maturing this time last year.
With-profits are long-term savings products which aim to smooth out stock market volatility by holding back returns in good years and paying them out in bad ones.
with-profits life subsidiaries reflects the impact of weak financial markets on Aviva's ability to generate retained earnings, and recognizes that the surplus capital held within the U.
Its refusal to get sucked into the boom in internet, telecoms and media stocks in the late 1990s meant it was able to maintain a high level of investment (more than 70 per cent) in equities in the threeyear bear market following the millennium and its with-profits fund has since reaped the benefit of the overall recovery.
Initial payments have been made to 37,379 With-Profits Annuitants (WPAs) or their estates, totalling GBP81m and subsequent annual payments totalling GBP183m have also been issued.
A Au10,000 with-profits bond purchased 10 years ago is now worth Au17,248, giving customers an impressive annual return of 5.
It said investment markets have remained "volatile" and the challenging economic backdrop has highlighted the value of the "prudent approach" it has taken to managing with-profits funds.
Billions of pounds sitting in the mighty with-profits funds run by the big insurance companies were invested to build lump sums, cover mortgages or pay pensions - and many savers will be wondering why they bothered.
Patrick Connolly at leading financial advisor AWD Chase de Vere says: "This bonus declaration is a clear endorsement that Prudential remains, by some distance, the leading provider of with-profits investments.
A further 37,000 with-profits annuitants, who are trapped at the society, will be compensated for their losses in full, with the money paid in regular instalments for the rest of their lives.
But the group said not all of its with-profits customers whose policies mature this year would see an increase in the final bonuses they receive on their plan.