Norwich Union offers money-back guarantee

Norwich Union is introducing a five-year money-back guarantee on all new with-profit fund investments in its portfolio investment bond.

The new feature will guarantee to return the policyholder's original investment on the policy's fifth anniversary regardless of investment conditions.

This guarantee applies to portfolio with-profit fund investments taken out from February 9 until December 31, 2004, or earlier if fully subscribed prior to that.

It will also be available for offshore with-profits investments in the Norwich Union International core fund bond and Norwich Union International with-profit bond.

In addition to the five-year guarantee of return of original investment, an extra 1.5% allocation rate will continue to be offered on all new investments in portfolio bond.

Norwich Union is Britain's largest insurer and a leading provider of life, pensions and investment products.

Neil Davies, head of investment product development at Norwich Union, said: "We are further improving our with-profits bond offering with a guarantee to return investors' money after five years regardless of what happens to the stock market.

"We understand that capital security is a concern for some investors and we believe this new guarantee will provide them the reassurance they need."