Bad news for the 1.5M people holding endowment mortgage policies with the Norwich Union.
Reports indicate that the Norwich Union will be cutting their returns by 0.75%.
This cut is ensure that the guarantees made by Norwich Union, which promise that the policy will be worth a minimum amount on maturity, will be honoured.
Norwich Union expects returns of between 4.5%-6% a year after tax.
Doubtless other life insurers will be delivering bad news as well.