NU withdraws with-profits inflation guarantee

The insurer says the change, which will be implemented from 17 April, will not affect existing policyholders, but will apply to new applicants for the with-profits investment bond. Volatility in stock markets, coupled with an uncertain outlook, have made it difficult to price the cost of the guarantee, Norwich Union says. However, the option had been very popular with investors and financial advisers, and NU hopes to return some for of guarantee when markets stabilise. "Our advisers should be reassured that we remain committed to with-profits and continue to provide guarantees - for e...