Norwich Union offers special bond terms

Norwich Union is launching special offer terms on its Portfolio Bond, FlexiBond and Bond 2000 with effect from 6 April 2002:

• Investments in the Portfolio Bond of Ł10,000 and over will receive increased unit allocation rates.
• Investments in the FlexiBond of Ł10,000 and over, up to Ł99,999, will receive increased unit allocation rates.
• Investments made into Bond 2000 of Ł25,000 and over will receive an increased guaranteed anniversary bonus.*

The investment bond market continues to be highly competitive with providers continually launching new products or enhancing existing ones. In November 2001, Norwich Union widened even further the flexibility and choice within its three bonds through the addition of 57 externally managed funds. Through these new funds, clients now have access to 12 respected external fund managers as well as Norwich Union’s own award winning fund management team.

This latest initiative further improves Norwich Union’s competitive position in the bond market.

Commenting on the special offer terms, Neil Davies of Norwich Union’s investment propositions team said: “Through the launch of our special offer terms, we will be offering clients even greater value for money. This demonstrates Norwich Union’s commitment to being a leading player in the bonds market.”

The special offer terms are as follows:

PORTFOLIO BOND
		Percentage of investment used to buy units
Amount invested		Standard terms		Special offer terms		Change
Ł5,000 - Ł9,999		101.00%		101.00%		No change
Ł10,000 - Ł24,999		101.50%		102.00%		0.50%
Ł25,000 - Ł49,999		102.00%		102.25%		0.25%
Ł50,000 - Ł99,999		102.25%		103.00%		0.75%
Ł100,000 and over		102.50%		103.25%		0.75%
FLEXIBOND
		Percentage of investment used to buy units
Amount invested		Standard terms		Special offer terms		Change
Ł5,000 - Ł9,999		101.95%		101.95%		No change
Ł10,000 - Ł24,999		103.50%		104.25%		0.75%
Ł25,000 - Ł49,999		104.00%		104.75%		0.75%
Ł50,000 - Ł99,999		104.75%		105.50%		0.75%
Ł100,000 and over		105.50%		105.50%		No change
BOND 2000
		Guaranteed first anniversary bonus (Calculated on the value of units) *
Amount invested		Standard terms		Special offer terms		Change
Ł5,000 - Ł9,999		0.50%		0.5%		No change
Ł10,000 - Ł24,999		2.00%		2.0%		No change
Ł25,000 - Ł49,999		2.10%		2.25%		0.15%
Ł50,000 - Ł99,999		3.00%		3.25%		0.25%
Ł100,000 and over		3.50%		3.75%		0.25%

* The effect of this bonus will be reduced by any applicable early exit charge and/or market value reduction.

Press office contacts:
		Out of hours
James Evans, Norwich Union	08703 66 68 78	07790 487105
Louise Goffee, Norwich Union	08703 66 68 70	07810 057362
Ian Beggs, Norwich Union	08703 66 68 71	07790 487533

Notes to editors:

The special offer may be withdrawn or varied at Norwich Union’s discretion at any time.

The Portfolio Bond, FlexiBond and Bond 2000 are lump sum investment bonds with no fixed term. They are designed as long term investments and should not be viewed as short term commitments.

The value of an investment can go down as well as up and is not guaranteed.

Full written details are available on request.

Norwich Union is the UK’s largest insurer. It is the UK’s largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business.

Norwich Union has strategic alliances with over 20 building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.

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