ReAssure ex Legal and General with-profits endowment

m4gman

Evening all...

We currently have a with profits endowment policy that is due to mature in June 2022 and have noticed some considerable changes in the fund value in the last few months. It was originally taken out in 1997 to cover the mortgage, however, the mortgage was converted to capital repayment but the endowment was kept on purely for the investment. £30k is the expected return on maturity in June.

Viewing the fund via the ReAssure portal the value in December was just shy of £32k which was a nice surprise but when we looked again in March it's value had dropped by £2,500(£29.5k) and in the following week proceeded to drop another £1,000(£28.5k). Currently, as of today it's sitting at £29.8k. 

In response to these fluctuating values, we requested from ReAssure a statement of value for the last 12 months including all charges incurred, adjustments made and/or MVR's made in relation to our fund value as those sort of fluctuating values seemed very strange.

Our information request from ReAssure was denied by post, unless we were emigrating, divorcing, instigating a mis-selling complaint or if the FOS/FSCS request the information.... so basically, keep your nose out and mind your own business.

What are your thoughts on this ??

I'm not an expert in this field by any measure but a with profits endowment policy surely shouldn't appear to be behaving as such and dropping 10% of its value at all

Grateful for all insights...

Chris 

Thrugelmir

What % of the payout is made up of the terminal bonus? Markets have fallen in recent months. 

m4gman

Nothing is showing on the ReAssure portal yet apart from the fund value. 

Thrugelmir

m4gman said:

Nothing is showing on the ReAssure portal yet apart from the fund value. 

Probably a projection then based on current bonus rates. Which will have been falling. 

dunstonh

In response to these fluctuating values, we requested from ReAssure a statement of value for the last 12 months including all charges incurred, adjustments made and/or MVR's made in relation to our fund value as those sort of fluctuating values seemed very strange.

Nothing strange about it at all. 

You may have heard on the news that Russia invaded Ukraine.  That has had a negative impact on investment returns.   Prior to that, gilts had a drop due to the rising interest rates and rising inflation (a perfect storm for gilt unit prices) and prior to that consumer discretionary companies, in particular tech stocks crashed.   So, you had three events in 3 months that created a large fall around 10-15%.   Yours has gone down entirely in line with expectation.

I'm not an expert in this field by any measure but a with profits endowment policy surely shouldn't appear to be behaving as such and dropping 10% of its value at all

That is an incorrect assumption.   Most WP funds are low/medium to medium and typical loss ceiling is around 10-15% apart from in the rare generational events (dot.com crash, credit crunch etc) where it may just get above 20%.