Article date: 21 May 2003
Norwich Union is considering entering the Protected Isa marketthis summer, possibly as soon as July.
This would be the first Protected Isa that Norwich Union hasoffered.
The estimated size of the structured product market is around£7bn per annum. Approximately a quarter of structured product salesgo into ISAs or their unwrapped equivalent. Approximately twothirds of total structured product sales are written into incomegenerating products.
This is a substantial and growing market, and one which NorwichUnion intends to be active in going forward. The Protected Isamarket also matches Norwich Union’s customer base anddistribution strengths, and represents an opportunity for thecompany to enhance its range of investment propositions, andfurther diversify its revenue and profit streams.
Norwich Union is currently evaluating a Protected Isaproposition with key IFAs. This includes a PEP-transferproposition.
Broadly, the key features of Norwich Union’s proposedProtected ISA at this stage are:
- Tranche based
- 5 year term
- Mini and Maxi options
- Fixed income paid monthly (no annual income option), or re-invested.
Commenting, Willie Mowatt, director of product development atNorwich Union, said: “We believe consumers are looking forthis type of product, as it addresses many of their fears aboutinvestments in the current climate.
“We are looking at launching a transparent, market leadingproduct, with the aim of offering realistic but very competitivereturns substantially above current retail interest rates. We wouldmonitor other products available in the marketplace, to ensure thata Norwich Union Protected Isa continues to be extremelycompetitive.
“We’ve looked at modelling the product features ofthe Protected Isa on our Prosper Income Bond, in order to benefitfrom the understanding that the Prosper Income Bond has built up inthe marketplace.”
Press office contacts:
James Evans - 08703 66 68 78 / 07790 487105 Ian Beggs - 08703 6668 71 / 07790 487 533 Louise Goffee - 08703 66 68 70 / 07810057362
Notes for editors
- Norwich Union is the UK’s largest insurer. It is aleading provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 75% of thecompany’s long- term savings business.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of imagesare available from the Aviva plc's internet press centre atwww.aviva.com/media.