Norwich Union backs with-profits with five-year money-back guarantee

Article date: 9 February 2004

Norwich Union is introducing a five-year money-back guarantee onall new With-Profit Fund investments in its Portfolio investmentbond.

The new feature will guarantee to return thepolicyholder’s original investment on the policy’sfifth anniversary regardless of investment conditions. Thisguarantee applies to Portfolio With-Profit Fund investments takenout from 9 February until 31 December 2004, or earlier if fullysubscribed prior to that. It will also be available for offshorewith-profits investments in the Norwich Union International CoreFund Bond and Norwich Union International With-Profit Bond.

In addition to the five-year guarantee of return of originalinvestment, an extra 1.5% allocation rate will continue to beoffered on all new investments in Portfolio bond.

Neil Davies, head of investment product development at NorwichUnion, said: "We are further improving our with-profits bondoffering with a guarantee to return investors’ money afterfive years regardless of what happens to the stock market. Weunderstand that capital security is a concern for some investorsand we believe this new guarantee will provide them the reassurancethey need."


Press office contacts:
James Evans 0870366 68 78 Out of hours 07790 487105
Lorna Wiltshire 08703 66 68 78 Out of hours 07788 471849
Louise Goffee 08703 66 68 70 Out of hours 07810 057362
David Gwyer 08703 66 68 71 Out of hours 07800 699508

Notes to Editors

  • Norwich Union is the UK’s largest insurer. It is a leadingprovider of life, pensions and investment products and one ofthe leading IFA providers. IFAs provide around 70% of thecompany’s long-term savings business.
  • Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco PersonalFinance and The Royal Bank of Scotland Group.
  • Norwich Union’s news releases and a selection of imagesare available from Aviva's internet press centre at

About the Portfolio money-back guarantee

  • The five-year guarantee will apply to investments heldcontinuously in the With-Profit Fund for five years that are fullywithdrawn on, or within two weeks after, the 5thanniversary. A penalty will be incurred if money is withdrawn fromthe fund before the 5th anniversary.
  • The five-year money-back guarantee offer may be withdrawnbefore the end of 2004 if fully subscribed before then.
  • The guarantee does not apply to the With-Profit Income Fund, orto switches into the fund.

About the Norwich Union Portfolio investment bond

  • The Norwich Union Portfolio bond offers a flexible way to investfor growth or income. Its minimum investment is £5,000 andinvestors can choose to put their money in a selection of fundsincluding with-profits, equity, distribution, property, bondsand cash, which are run by Norwich Union and other fundmanagers.
  • Offers valuable guarantees - for investments into theWith-Profit Fund, there is also a 10th anniversary money-backguarantee.
  • Is simpler and more flexible - offering a wide choice ofinternal and external funds and a choice of two chargingstructures within a single bond
  • Has clear and easy to understand charges - explicit chargingprovides investors with a clear picture of the charges applicableto their investment
  • Funds on offer – offers investors the choice of incomeand growth funds. Investors can choose from a range of 31 internalfunds as well as more than 50 external funds managed by 12industry-renowned fund managers

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