ROYAL & SUN ALLIANCE QUERY

Legacy_user

I read an article on Sunday regarding RSA and would be obliged if anyone could answer a query. My father in law invested £50,000 around 10 years ago with RSA to pay my son's school fees through a Guaranteed School Fees Plan. Should I be worried at all, or was the article nothing to do with this side of RSA's business? Many thanks, worried mum.

dunstonh

You may want to explain what he read.

last thing I read was a bulletin on 18th June (and i have just done a quick check to see if there is anything newer, and there isnt) about talks regarding its aim to sell its life and pensions arm.

R&SA have been focused on general insurance for some time and have been ridding themselves of their non core businesses over the last 2 years. As the bulletin said, It is no surprise as it is the logical conclusion to the sad history of what were once two proud names in the industry.

The likley buyer, it says, is Resolution Life. A venture capital vehicle. There are a couple of other possiblities.

R&SA has the resources to cover the Life and Pensions arm but under the ownership of a venture capitalist, which is still confusing as to what they would want with a legacy life and pensions company, it wouldnt have the financial back up which it presently has.

The bulletin gives the suggestion that R&SA life and pensions will be run down (like many legacy life and pensions companies) for parental profit with scant regard for policy holder returns or service.

Although individual circumstances would still be the paramount determinant, we would regard the deal such as this as further loading the advice decision towards one to get our of the relevent with profit funds. This wouldnt apply to unit linked funds.

dunstonh

Ok, it has now been sold to Resolution Life, the venture capital company.  

So, if you have a with profits investment, you now need to investigate the surrender options and weigh up the pros and cons of staying with them or calling it a day. However, be aware that it doesnt mean you should surrender as there may be contractual and beneficial reasons to stay. Until you investigate, you dont know.

Unit linked investments do not have this concern.

mystic_trev

I've got a 25 year endowment with 3 years left - so assume I'd be daft to cash it in - Mortgage has been paid off - so it's just part of my savings.

dunstonh

On face value that would be sensible.