How to add profits as an insurer in one easy lesson...take it from loyal customers!
Thursday, 25 March 2010
In the FT yesterday, the report discussed the increase in L&G profits.
“The big question for analysts is whether this kind of performance is repeatable. The company said it expected to generate £600m of cash in 2010. Much of that will come from "monetising" its existing business, or taking more cash out of older maturing policies than it invests in backing new policies.
One analyst said: "The problem with that is you can only monetise in-force business once. You've got to keep filling the bath up."
So I read this as: long term loyal existing customers with L&G are being penalised for short term profits! That poses a number of questions. How do long term policyholders trust L&G?, should they surrender now if management is happy to take more cash out in future years? Each year policyholders should obtain a surrender value to understand how the real value changes over the years. Then they can make decisions on the value of their investments.
posted by Murray Round Wealth Management @ 09:20,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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