Norwich Union is considering entering the Protected Isa market this summer, possibly as soon as July.
Norwich Union is considering entering the Protected Isa market this summer, possibly as soon as July.
This would be the first Protected Isa that Norwich Union has offered.
The estimated size of the structured product market is around Ł7bn per annum. Approximately a quarter of structured product sales go into ISAs or their unwrapped equivalent. Approximately two thirds of total structured product sales are written into income generating products.
This is a substantial and growing market, and one which Norwich Union intends to be active in going forward. The Protected Isa market also matches Norwich Union’s customer base and distribution strengths, and represents an opportunity for the company to enhance its range of investment propositions, and further diversify its revenue and profit streams.
Norwich Union is currently evaluating a Protected Isa proposition with key IFAs. This includes a PEP-transfer proposition.
Broadly, the key features of Norwich Union’s proposed Protected ISA at this stage are:
- Tranche based
- 5 year term
- Mini and Maxi options
- Fixed income paid monthly (no annual income option), or re- invested.
Commenting, Willie Mowatt, director of product development at Norwich Union, said: “We believe consumers are looking for this type of product, as it addresses many of their fears about investments in the current climate.
“We are looking at launching a transparent, market leading product, with the aim of offering realistic but very competitive returns substantially above current retail interest rates. We would monitor other products available in the marketplace, to ensure that a Norwich Union Protected Isa continues to be extremely competitive.
“We’ve looked at modelling the product features of the Protected Isa on our Prosper Income Bond, in order to benefit from the understanding that the Prosper Income Bond has built up in the marketplace.”
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Press office contacts:
James Evans - 08703 66 68 78 / 07790 487105 Ian Beggs - 08703 66 68 71 / 07790 487 533 Louise Goffee - 08703 66 68 70 / 07810 057362
Notes for editors
- Norwich Union is the UK’s largest insurer. It is a leading 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 building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from the Aviva plc's internet press centre at www.aviva.com/media.