Axa is no longer accepting new business for offshore 'with profits' bonds and is planning to restrict the amount it allows investors to put into its onshore 'with profits' bond. This move is to be made, in our opinion, because of recent difficulties in World stock-markets.
In simple terms, 'with profits' is designed to smooth out the peaks and troughs of investment. Declaring bonuses for growth even when markets are poor and retaining profit when markets are good to fund the bad years.
Recently, it has all been poor news, so perhaps providers, which do not just include Axa, are looking at the liabilities they are taking on by accepting 'with profits' business and being a little more cautious.
Find out more about with profits in general.