The Prudential and Aegon are reviewing their with-profits business, looking to bring in more transpa...
The Prudential and Aegon are reviewing their with-profits business, looking to bring in more transparent products in keeping with Ron Sandler's recommendations.
Speaking at a joint Association of British Insurers/British Bankers Association seminar last week, the Prudential said it may migrate with-profits business away from its current 90:10 structure. Under this structure, 90% of the profits goes to policyholders and 10% goes to shareholders.
Richard Field, head of Pru Lab, Prudential's product design team, said further changes to with-profits should be expected and 'possibly a departure from the 90:10' structure.
The changes will likely include more clearly defined charges, codified principles and practices for financial management and independent monitoring, he said.
Speaking at the same seminar, Stephen Meek, head of the savings and investment products team at the Treasury, said with-profits would continue to exist but the structure would need to be reformed.
Possibly in line with these recommendations, Investment Week has learnt Aegon is in the latter stages of developing a new with-profits product more in keeping with Sandler's recommendations, such as was launched by Scottish Widows earlier this year.
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