Aviva With Profits
RWP Research Findings, Overview and Comments
Aviva is the company that now operates the With Profits Funds that were previously sold by a host of companies, names which no longer exist in the market-place. The list includes Norwich Union, Commercial Union and General Accident. They also manage the funds of Provident Mutual.
This mixed bag of historic takeovers and mergers leads us to the Aviva that exists today. As with many other companies that have a long history of managing With Profits and there is a complete variation in how their various With Profits policies have performed and the current state of play.
A policyholder who took out an endowment with Norwich Union in 1990 may have a very different position and outlook to a policyholder who took out a With Profits Bond with Commercial Union in 1998 as an example.
Both would be considered Aviva with-profits policyholders but their positions could be wildly different – in many respects.
In considering any company and its with-profits RWP will look to assess a range of factors which will include: the company’s management record; its transparency of information, its financial strength; its prospects for providing future returns and the nature of its with-profits approach.
We assess Aviva as a company easy to deal with, providing transparency and they are financially strong. However in reviewing policies for With Profits investors we see a wide mix of past performance, depending on when a policy was taken out and what type of policy it is. Some past performance is very poor; some is good. Some policies have compelling reasons to hold onto them, some are clearly risky with limited reward and offer policyholders limited value. There is no consistency. We recommend if you hold a With Profits policy it should be fully reviewed on its own merits to judge how it is has performed and its future prospects.
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Company ownership position
The legal structure and history of Aviva is complex. The with-profits funds in the UK are operated by Aviva Life and Pensions UK Limited which is part of Aviva PLC. Their offshore with-profits is operated by Aviva Life International Limited.
Aviva is a business today which hosts the interests and history of some of the UK’s formerly best known insurance brands such as Norwich Union and General Accident. The complete story behind the takeovers, mergers and name changes which have led to the modern business known as Aviva can be viewed here http://heritage.aviva.com/our-history/
Their roots can be traced back many hundreds of years.
Aviva With Profits Funds
They have five with profits funds or ‘sub’ funds:
- Aviva Life & Pensions UK Limited Old and New With-Profits Sub Funds
- Aviva Life & Pensions UK Limited Stakeholder With-Profits Sub Funds
- Aviva Life International Limited With-Profits Funds
- Aviva Life & Pensions UK Limited With-Profits Sub Fund
- Provident Mutual Sub Fund
Aegon, Aegon With Profits, Aegon With Profits Policy, Aegon With Profits Fund
For the latest with-profits bonus information please click here:
For information on how Aviva approach the management of their with-profits, including their current asset allocation mix and customer friendly documents on each product type please click here: