Tel: 0845 458 2633
← Rental yields rise | News For July 2008 | Fears of property price inflation in the future →
Policy holders denied payout
Prudential, Britain’s second largest insurer, has informed its policyholders and shareholders that it will not pay out some of the £8.7 billion of excess capital from it’s with profits fund to them as had been previously assumed.
The cash comes from the surplus that builds up in a fund over time. The Pru’s UK chief executive, Nick Prettejohn, said that the average pay out for each recipient would be in the region of £25 and that “after comprehensive and extremely complex analysis” it’s model of operation for the with profits funds would remain the same, arguing that insurers need the excess capital to maintain healthy and secure funds.
Executives at the Prudential went through rigorous questioning by the Commons Treasury Select Committee. The Financial Services Authority has also begun a review that may prevent insurers from using inherited estates to pay miss selling claims, something the Pru has done with £1.6 billion so far.
← Rental yields rise | News For July 2008 | Fears of property price inflation in the future →
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
This site is intended for UK residents only. The overall cost for mortgages for comparison is % APR.
The actual rate will depend on your circumstances. APR variable and based on a usual case.
Grovelawn Financial is a trading name of Grovelawn Limited, which is authorised and regulated by the Financial Services Authority.
Grovelawn Limited is Registered in England & Wales number 5030300. Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY.
Entered on the Financial Services Authority's Register — Register Number: 314204 — Consumer Credit Licence Number: 573287
The Financial Services Authority (FSA) do not regulate some types of buy to let, commercial, overseas mortgages, tax advice and credit or loans not secured on property.