Industry stages recovery from with-profits slump

With-profits business is unlikely to regain the popularity of the 1990s but recent figures record an improvement in returns

After the problematic period following the UK equity market’s setbacks and mis-selling scandals in connection with with-profits business in the 1990s and the early years of the present decade, the largest life funds of the insurance industry are showing considerable recovery as well as providing more secure returns for their policyholders. Although with-profits business is unlikely to regain the popularity that it enjoyed during the closing decade of the last century in the context of mortgage repayments, respectable returns may be expected from companies that still offer endowment products.