The Endowment Diary

The Endowment Diary

Text

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

Tuesday, June 26, 2007

Every Cloud Has a Silver Lining

As can be seen from this article in the Evening Star, whilst the long suffering holders of endowment polices may be suffering, claims firms are doing rather well out of the endowment mortgage scandal.

Experiences Connect, of Ipswich, has seen turnover rise from £344K in 2005 to £925K in 2006 with forecasts for 2007 of £1.4M.

The firm aims to have increased its workforce by between 15 and 20 new members of staff, within the month.

As the old saying goes:

"every cloud has a silver lining".

Monday, June 18, 2007

Norwich Union's Inherited Estate

Norwich Union's Inherited Estate

Norwich Union with-profits policyholders are demanding cash rather than extra bonuses, when the insurer comes to distribute its £5BN inherited estate.

Inherited estate being money in a with-profits fund that is surplus to requirements.

Norwich Union is currently in the process of deciding how to distribute its fund fairly to its 1.1 million policyholders. Prudential is also doing the same wrt its 4 million with-profits policyholders.

Former gas regulator, Clare Spottiswoode, has been appointed to represent the interests of Norwich's with-profits policyholders.

Those affected are in two of its with-profits funds, the old Commercial Union fund and the old General Accident fund. Those in the Norwich Union and Provident Mutual funds will not get anything, because they got windfalls when the insurer joined the stock market ten years ago.

Mrs Spottiswoode has held roadshows across the country to canvass the views of policyholders, and has also commissioned a survey of their views. The results of the roadshows and surveys show that twice as many policyholders would prefer to have cash in hand, rather than extra bonuses.

Clearly the long suffering policy holders have lost faith in the concept of endowment mortgages.

Who can blame them?