The Endowment Diary

The Endowment Diary

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The Endowment Mis-selling Debacle - one of the UK's worst financial scandals

Sunday, May 08, 2005

Endowment Crisis Worsening

Endowment Crisis Worsening

It seems that things are lurching from bad to worse in respect of the performance of the underperforming and useless endowment policies, held by 10 million people in the UK.

It is reported that over 50% of all policies, due to mature this year, will not meet their targets.

Norwich Union said that 19,000, or 58%, of its 33,000 policies will fall short this year.

Standard Life said that over 14,000, or 47%, of its 30,000 policies maturing this year will fall short.

That did not prevent Sir Brian Stewart, chairman of Standard Life, from deluding himself and others last week by saying that endowments were "not all bad"; in fact he was even predicting that they would make a comeback!

Scottish Widows is expecting that 2/3rds will not meet their targets this year.

L&G didn't seem to have any figures, they were not "readily available", how reassuring!

However, Prudential said that none of its 8,376 policies due to mature this year would fall short.

Maybe Prudential has something to teach the other life assurance companies, as to how to manage an endowment fund?

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