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The Jewish Chronicle

Even Sandler may not polish Pearl

March 4, 2010 11:27

ByAlex Brummer, Alex Brummer

3 min read

Many of us, of a certain vintage, have a "with profits" or endowment policy stuffed into a bottom draw somewhere. Before the age of ISAs, VCTs and index linked funds, these were regarded as the ideal safe investment.

Over time they fell out of fashion for a variety of reasons, most notably in the late 1990s and early "noughties" when it was discovered that they were unlikely to pay off the mortgage as promised by the financial adviser who had sold them.

As a result, the big insurers came up with new suites of financial products and the historic "with profits" or "zombie" policies, as they became known, were sold on. In my own case, a convertible life policy originally taken out with the Yorkshire has been on an incredible odyssey.

It was taken over by Royal Insurance, which in turn merged with the Sun Alliance, to become Royal Sun Alliance (itself renamed RSA). RSA dumped its with profits funds and they were bought up insurance whizz Clive Cowdery, founder of Resolution. Having put together several zombie life funds, Cowdery sold them on to pizza entrepreneur Hugh Osmond, who had been doing much the same as Cowdery through his own insurer, Pearl.