Norwich Union is to cut payments on maturing endowment policies, even though their main with-profits fund returned 17.7% before tax last year. The company recently announced that from this month, a typical maturing 25 year endowment mortgage would pay out about 4% less than an equivalent policy would have delivered a year ago.
At the same time, many holders of shorter-term policies will benefit from bigger payouts later this year.
Our view
Norwich Union, along with many, have sensibly managed their 'with profits' fund and just a year of recovery does not make up for the previous three or four years difficulties.