Royal and Sun Alliance, the UK general insurance giant, have confirmed that last year they had to inject more than £464m into their long term life with profits fund to keep it solvent.
The fund is starting to be protected in view of its huge £1bn guaranteed annuity liabilities. The money is a mix of loans to the Fund from the Group and shareholder funds.
Our View
This is not a surprise and we expect other providers to make moves to protect their with profits funds in light of guaranteed annuity problems and also the impact of the poor investment climate over the last 2 years or so.