What we've been doing...
Increase in EBR of Pearl Assurance with profits fund from around 25% to a range 5% either side of a 50% target. This also benefits some NPI policies managed in Pearl Assurance. Benchmark equity exposure increased from 25% to 45% in Q3 2005 and from 45% to 50% Q3 2006
Increase in EBR from 10% to 35% for some London Life policyholders from January 2007
Removal of equity collar from Pearl Assurance with profits fund. This transaction was effected in Q3 2005
and what it might mean
£150m of added return for with profits policyholders to date. This may increase the returns on a mid-term 20 year £100 per month in-force savings contract by around £2,000 or more at maturity
This may increase the returns on a mid-term 20 year £100 per month in-force savings contract by around £2,000 or more at maturity
£80m of added return for with profits policyholders to date
Source: Cazalet Consulting, July 2007