NORWICH UNION is again cutting payouts on maturing mortgage endowment policies, even though its main with-profits funds returned 17.7% before tax last year, says this morning's Guardian .
The company yesterday announced from this month a typical maturing 25-year endowment mortgage would pay out about 4% less than an equivalent policy would have delivered a year ago. It said payouts on this type of policy were likely to continue to decline "because our expectation of future investment returns has reduced compared to those historically earned". At the same time, however, many holders of shorter-term policies are to benefit from bigger payouts this year. THE FINANCIAL TIMES yesterday agreed to pay £300,000 damages and around £2.2m in costs to City brokers Collins Stewart...
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