Zurich With Profits Funds and Policies

Zurich

Ownership status

Zurich is a public limited company, a is an insurance based financial services provider with headquarters in Zurich, Switzerland .

Zurich manage all policies which were previously owned by eagle star and ESLACO, which is now a fully owned subsidiary of Zurich life limited.

Range of Policies

Zurich offer two main types of with-profits policy, 90:10 policies and 100:0 policies.

The 90:100 fund offers both conventional and unitised policies. The fund operates on the basis of a 90:10 split of any distributable surplus whereby the policy holders are entitled to 90% of any surplus arising, and shareholders, the remaining 10%, via a transfer to the shareholders fund.

The 100:0 fund also offers both convention and unitised policies however is different to the 90:10 policy in that any surplus arising (less any applicable taxation), will be distributed over time to the policy holders. There is no overseas type business in the 100:0 with-profits fund.

Financial strength

Moody’s - A2

Standard and Poor’s - A

Typical asset share

	Asset share
Fixed interest investments	70%
UK shares and options	21%
Cash	5%
Property	4%

Source: www.investors.zurich.co.uk

MVRs

The most recent media release from Zurich regarding MVRs on their with-profits policies, stated that the average MVR for a with-profits policy was 13%. However, in many cases market value reductions have been reduced or removed completely.

With-profits return

	3m return	6m return	1yr return	3yr return	5yr return
WP Life Fund 9	0.2%	0.5%	1.0%	5.0%	8.1%
WP Life Fund 2	0.8%	1.5%	3.0%	9.3%	16.0%
Sector Average	0.4%	1.4%	2.9%	9.6%	16.2%

WP Pension 5	0.3%	0.5%	1.0%	3,6%	11.2%
Sector average	0.6%	1.4%	3.3%	10.9%	18.3%

Source: www.trustnet.com/pen/funds

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