NU withdraws with-profits inflation guarantee

Norwich Union is to withdraw its inflation guarantee option for its with-profits investment bond. ...

Norwich Union is to withdraw its inflation guarantee option for its with-profits investment bond. The insurer says the change, which will be implemented from 17 April, will not affect existing policyholders, but will apply to new applicants for the with-profits investment bond. Volatility in stock markets, coupled with an uncertain outlook, have made it difficult to price the cost of the guarantee, Norwich Union says. However, the option had been very popular with investors and financial advisers, and NU hopes to return some form of guarantee when markets stabilise. "Our advisers sh...