There has been a steady decline in the with-profits sector in the United Kingdom over time, with falling customer numbers and assets under management. Few providers are now writing material volumes of new with-profits business. As a result, there are many with-profits funds now closed to new business and in run-off. In this white paper, we consider three different ways in which firms can approach the wind-up of conventional with-profits business: Conversion to non-profit, conversion to unit-linked, and other options for remaining as with-profits, including merging with another with-profits fund. Case studies are included, and further considerations are discussed.
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The with-profits end game: A consideration of the potential approaches to winding up with-profits funds
Some thoughts on potential approaches to winding up with-profits funds.
Amy Nicholson, Dianie Ravinthiranathan, Jennifer van der Ree