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Norwich Union

Ownership status

Norwich union is an Aviva company. Aviva is the world's fifth-largest insurance group and the largest insurance services provider in the UK .

Range of Policies

Norwich union offer many different types of policy which can either be described as a unitised, a conventional, or a stakeholder policy. These types of policy will be either a bond fund, a pension fund, an endowment fund, or a legacy fund which will have been taken out with another company but is now managed by Norwich union. Norwich union manages funds previously owned by General accident life, Commercial union life, and Provident Mutual life.

Typical asset share

Norwich union in general keep two thirds of the fund invested in higher risk assets which could give higher returns such as shares and property and stock. The rest is in lower risk as government bonds, company bonds, and deposits.

	Unitised policies	Conventional policies
UK shares	43.2%	43.2%
International shares	9.8%	9.8%
Property	21%	21%
Fixed interest, corporate and international bonds	20.5%	20.5%
Cash	5.5%	5.5%

Source: www.aviva-for-advisers.co.uk

Financial strength

Moodys - AA/Stable/

Standard and Poor’s - Aa1

MVRs

Recently Norwich union have removed all remaining MVRs (which were on policies when money was invested in 1999 or 2000), which means that all Norwich union with-profits policies are now MVR free, (for the time being). Norwich Union still reserve the right to impose an MVR on any policy. When asked whether the reinstatement of MVRs was likely, Norwich union replied, “We will keep the position under review. It is likely that we would need a significant fall in values (not just based on the stock market) before we would reintroduce MVRs but this remains a possible future outcome”.*

Source: www.aviva-for-advisers.co.uk

With-Profits return

	Fund size	% Return 07	% Return 06	% Return 05	% Return 04	% Return 03	5 Yr Cumulative return
WP pension Series 1	£247.94m	3.0	3.0	3.0	3.4	4.3	17.6
WP Life Fund Series 1	£2538.31m	3.2	2.0	2.3	2.9	3.6	14.6
WP legacy Fund (CGU)*	£1559.81	3.3	2.0	2.3	2.9	3.6	14.7

Source: services.norwichunion.co.uk 2007

Applies to Portfolio bond funds originally taken out with CGU life

	6m return	1yr return	5yr return	10yr return	25yr return
WP endowment	N/A	N/A	N/A	3.1%	8.3%

Source: www.trustnet.com Money management

The information on this website is to be viewed as general information and does not constitute advice. Views and opinions expressed are those of the individual contributors. Individuals reading the site should not rely on any of the information contained within the site in making any decisions. DMP Financial cannot be held responsible for any liability suffered by any individual as a result of information contained within the site. In the event that advice or help is required then independent advice should be sought from a regulated independent adviser.