Zurich With Profits Policy
Company ownership position
Zurich With Profit funds are operated and run by Zurich Assurance Ltd. This is a company which is part of the global Zurich Insurance Group, which has brands, divisions and conducts business in 170 countries worldwide.
Zurich’s history can be traced back to 1872. In the UK the modern Zurich business is an amalgamation of businesses that have come together under this one brand, these include Allied Dunbar, Eagle Star and the original Zurich Life.
Zurich With Profits Funds
Zurich operate a series of with profits funds that all are now closed to new business. They span three basic different types of fund which are known as 90:10 conventional, 90:10 unitised, and 100:0. The 90%/10% split denotes a share of bonuses and returns between policyholders and shareholders.
Across these three types and the various series of plans there are many different policy conditions applying, some policies have valuable long term guarantees for example.
Generally, however, across the board their with-profits plans are managed on a defensive basis with a large proportion of the money within their various funds in fixed interest or other low risk areas. They openly acknowledge on their web site and in their published with-profits material that most policyholders will not have an investment position which is in line with the original objectives.
RWP Research Findings, Overview and Comments
In considering any company and its with-profits RYWP 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.
Straight away we have to applaud Zurich for the transparency of information; they have produced publicaly available, easy to read, easy to understand material which sets out all relevant factors for policyholders (unfortunately despite this it doesn’t mean it is any easier for policyholders to know what to do for th best moving forward).
Like many with-profits companies today they are swayed towards a defensive approach (to make sure they can meet wider, long term liabailities) and skew their returns, wherever possible, to terminal bonuses, which can be added and withdrawn very easily.
The returns in recent year have been steady and in addition they are looking to pay added amounts in respect of the “Zurich estate” and, indeed, have made some payments to some policyholdersIn this regard in recent times.
In many ways Zurich are a mid-table company, they do not set off any alarm bells but on the flip side they are unlikely to pay bonuses which will put them ahead of alternative options.
For information on how Zurich approach the management of their with-profits, including their current asset allocation mix and customer friendly documents on each product type please click here.
For a more detailed look at your Zurich with profits policy, fill out the form below:
Please remember that any of our ‘traffic light’ ratings or conclusions are general; an appraisal of the general position for that company. There will however be situations where an individual policyholder with a company that has a ‘green light’ may want to look at surrendering or transferring their policy (for example to secure a guarantee or because it does not suit their risk position), likewise there will be situations where policyholders with a ‘red’ company want to stick with what they have (for example because the penalty of exiting will be too great). Nothing can replace getting a report based on your unique circumstances; it is only this unique, personalised report which will provide the information that will instruct you on your circumstances regardless of the company and our rating.
Please note the information on these pages should not be used in any way or form as the basis for any decision about your with-profits investment or plan. RWP makes every attempt to ensure that all information is up to date and accurate but RWP cannot be held responsible for any of the detail provided. The information above is published to act as a broad guide to the Company’s position, history and future prospects. However any decision about your own with-profit plan should only be taken after you have sought and received qualified advice from an appropriate regulated advisory source and should be based entirely on that advice.