NPI

Ownership status

NPI is part of Pearl Group Limited, a specialist owner/manager of long-term savings and investment portfolios which also includes Pearl and London Life. NPI holds £4.8 billion of assets in their closed life funds on behalf of their 122,000 policyholders.

Pearl Group Limited is backed by two large investment organisations, Sun Capital Partners and TDR Capital,

NPI Limited reassures all its With-Profits business to Pearl Assurance plc. Under the terms of those agreements with Pearl, it is Pearl who determine annual bonus rates, market Value reductions (MVRs) and terminal bonuses, in line with the reassurance agreements, and investment policy for the With-Profits funds.

Range of Policies

NPIL has three types of with-profits policies – Unitised With-Profits, Socially Responsible With-Profits, and Capital Account.

Unitised With-Profits business is characterized by each investment in with-profits buying a number of units at the date of the investment. There is no guarantee on what those units may be worth at a future date, although the unit price cannot fall. Annual Bonuses are declared either in the form of additional units, or by an increase in the unit price, or a combination of both.

Socially Responsible With-Profits business is very much like UWP, but the investment is in assets selected to meet certain socially responsible conditions.

It relies on the backing of the main with-profits fund (invested in assets not subject to socially responsible criteria) to provide smoothing, meet guarantee costs and any reserves required in addition to the underlying asset value. Like UWP, it is characterised by each investment in with-profits buying a number of units at the date of the investment. There is no guarantee on what those units may be worth at a future date, although the unit price cannot fall. Annual Bonuses are declared in the form of an increase in the unit price.

Financial Strength

Moody’s- Baa3

Standard and Poors - AAA/ stable

With-profits return

	3m return	6m return	1yr return	3yr return	5yr return
Trustee WP penison	0.0%	0.0%	0.0%	0.0%	2.4%
Sector average	0.6%	1.4%	3.3%	10.9%	18.3%

WP life fund	0.3%	0.5%	1.0%	3.2%	9.0%
Socially responsible WP life fund	0.3%	0.5%	1.0%	3.2%	9.0%
Sector average	0.4%	1.2%	2.9%	9.6%	16.2%

Source: www.trustnet.com/life/fund

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