In the UK, where Norwich Union are the biggest life assurers
, the market was described as still tough, although Aviva said they had improved their competitive position by focusing on value rather than volume.
A sweeping review of Britain's savings industry today is set to land a fresh blow on life assurers
already crippled by the equity market slump and eroding profit margins, analysts said yesterday.
Life insurance company valuations are subsequently depressed and many assurers
are fairly tight in terms of solvency capital.
The group is the latest in a line of life assurers
to reduce bonuses or the size of with-profits policies.
It's part of moves by Scotland's second-largest life assurers
to diversify into a fully-fledged bank and ensure their survival.