Frequently asked questions

Equity backing ratios

Q. What is the current equity backing ratio?

A. See the table below:

Class of Business Equity backing ratio at 2009
Life Assurance (Traditional Endowment) 25% - 55%
Pension Plus 0% - 20%
Versatile Individual Pension Plan 0% - 20%
Buy out Plan 0% - 20%
Personal and Participating Pension 0% - 30%
Chargeable Rates 0%
Deposit Administration 0%
Pension Saver 0%
Unitised With-Profit - Life 20% - 60%
Unitised With-Profit - Pension 35% - 70%

The Equity backing ratio within each class of business may vary from policy to policy, depending on when the policy was taken out and how long is left to maturity/retirement.