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.
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.
The group is the latest in a line of life assurers
to reduce bonuses or the size of with-profits policies.
Life insurance company valuations are subsequently depressed and many assurers
are fairly tight in terms of solvency capital.
It's part of moves by Scotland's second-largest life assurers
to diversify into a fully-fledged bank and ensure their survival.
2001 promises to be a watershed year for life assurers