Dublin-based Norwich Union International (NUI) increased its new business by 122% in Q1 of 2005 in c...
Dublin-based Norwich Union International (NUI) increased its new business by 122% in Q1 of 2005 in comparison to Q1 2004. Just under 50% of new business continues to come from with-profits policies despite the negative publicity surrounding these products over the past few years.
While NUI wrote B102.6m of new business in the first three months of 2005, B45.4m of this were sales of with-profit business. Mike Gogan, marketing and communications director of NUI, said: "The ratio of sales of with-profits policies to unit-linked portfolio bonds has been steady at around 50:50 for the past few years. We have increased sales of both unit-linked and with-profits bonds over the past three years."
Gogan said that NUI has managed to continue to grow demand for with-profits bonds because of "its brand and financial strength. Many of the investors in our with-profits bonds are expatriates who are looking for the security of returns that these policies can deliver. A significant proportion of business came through the five-year guaranteed with-profits bond that was launched last year."
Clive Witter, managing director of NUI, said: "The strong quarter start to 2005 means we have entered a third year of increasing business. For this quarter, we attribute this trend to maintaining with-profit bonus rates at 2004 levels and introducing a new with-profit fund with a built-in five year money back guarantee."
Gogan added that NUI continues to focus on the UK market and the Crown Dependencies.
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