NU honours policy promise

NU expects 7% annual growth on with-profits fund and recommits to its endowment promise

Norwich Union is predicting 7% annual growth before tax and charges on its main with-profits fund, despite lower returns expected from markets in the coming years. The group has also reinforced its commitment to meeting 2000's promise to meet any shortfalls on mortgage endowment policies, despite not earning the stated sufficient investment return on its free reserves. NU said it will continue to support the promise, as long as this is not to the detriment of policyholders, and has set £1bn aside to pay for endowment shortfall assistance. The group said its promise remains viable under ...