Two major Traded Endowment Policy (Tep) players have responded robustly to the surprise exit from th...
Two major Traded Endowment Policy (Tep) players have responded robustly to the surprise exit from the market of erstwhile competitors Policy Portfolio and Beale Dobie. Both PolicyPlus and Surrenda-link have said they see this as a commercial opportunity and are stepping up their Tep purchase programmes.
Jo Bridger, marketing manager at PolicyPlus, said: "We will be buying more Teps for our fund contracts to fill the gap in the market created by Beale Dobie and Policy Portfolio. The closure of the two companies has created more demand for our products."
As reported in the August edition of International Investment, Beale Dobie and Policy Portfolio closed their Tep books on the back of falling profitability and increasing transparency of with-profits schemes.
The PolicyPlus business model involves buying Teps for fund contracts as well as acting as a broker for individual sales.
According to Surrenda-link, there has been a lot of interest in the institutional Tep market, with policy purchasing levels up and set to rise even further over the coming months. In addition, over the past few months, the returns on with-profits have become more positive.
Surrenda-link is similarly in the process of expanding its Tep business as well as diversifying into lines of secure investment, in the areas of commercial property and US senior life Interests.
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