Norwich union int'l shows strong first quarter sales ' 7% up on previous year's figures
Norwich Union International has added euro and dollar classes to its With-Profit Bond on the back of strong sales in the first quarter of this year.
The company reported sales of e35.7m for the first quarter, which is 7% higher than sales over the same period last year. These sales include e10.6m from the offshore company's with-profit business which is reinsured back to parent Norwich Union.
'Our new business figures are ahead of 2002, despite a difficult first quarter globally,' said Clive Witter, managing director of the Dublin-based life company, which entered the international with-profit market last October.
NUI reinsures its offshore fund back into Norwich Union's With-Profit Fund.
'While this means that sales are not reported here in Dublin, it does mean that our clients benefit from gross roll-up, while investing with the brand that manages almost £50bn in with-profits,' added Witter.
'Norwich Union is totally committed to with-profits. The product produces a smoothed return, which is particularly valuable in these volatile times. It aims to outperform cash based on the performance of the fund over the time the client spends in it.'
In a bid to target euro and dollar investors, the international life company has added two new funds to its offshore with-profit bond.
In addition to a sterling fund, the NUI With-Profit Bond now has euro- and dollar-denominated funds.
Where the sterling fund invests predominantly in sterling-denominated assets, the euro and dollar funds will invest predominantly in assets denominated in these currencies.
'We have received strong demand from IFAs to launch these additional funds,' said Paul Sherlin, marketing director.
'The majority of the offshore business is written in the Channel Islands and Isle of Man where investments are not necessarily in sterling alone. These new funds present a great new business opportunity for IFAs to target euro and dollar investors.'
The three with-profit funds have regular bonus rates ' although naturally not guaranteed ' of 4% for sterling and 3.75% for euro and dollars.
The minimum premiums for the dollar and euro funds are $15,000 and e15,000 respectively, and £10,000 for the sterling option.
Each fund will be reinsured into Norwich Union's With-Profit Fund, thereby benefiting from its financial strength, transparency and management.
The sterling fund pays a bonus rate of 4% and the euro and dollar funds each pay a bonus of 3.75%. Minimum premiums on the funds are £10,000, e15,000 and $15,000.
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