25 July 2002 - Zurich International Life, the new company name for the individual business of Eagle Star International Life, has launched its first single premium bond since becoming Zuirch International Life, the International Wealth Account.
The bond gives access to more than 130 highly regarded funds chosen from many of the most sought after fund management groups.
Available through IFA's, the single premium portfolio bond is aimed at individual, corporate and trustee customers who are looking for an offshore solution to their investment needs. The minimum investment is £40,000 for initial business and £5,000 for increments. There is a choice of three competitive charging structures, which all include 25 free switches each year. In addition, larger premiums will receive improved terms, which, for example, can reduce the yearly management charge to 0.20% on premiums over £500,000. (See notes to editors).
David Sims, Managing Director of Zurich International Solutions, which encompasses both the individual and corporate areas of the business, comments: "The International Wealth Account has been developed to match investor and IFA needs for easy access to many of the top fund managers and a choice of clear and transparent charging structures. I believe this bond will enable Zurich International Life to capture a larger share of the growing offshore single premium market, not just in the UK but worldwide."
The bond is available in two versions:
- A life insurance bond
The death benefit is 101% of the encashment value of the bond and there is no maximum age at entry.
- A capital redemption bond with no lives insured.
This runs for a term of 99 years and provides a guaranteed maturity benefit of twice the initial premium, minus any withdrawals.
ENDS
Notes to Editors:
CHARGES:
| Structure |
Total Establishment charge percentage of premium (over 4-5 years) |
Yearly Management Charge percentage of fund |
Yearly Policy charge |
| A |
7.0% |
0.5% |
£100 |
| B |
4.0% |
0.95% |
£100 |
| C |
10.15% |
0% |
£250 |
|
Discounts for larger premiums: |
| Premium Level |
Structure A Yearly Management Charge |
Structure B Yearly Management Charge |
Structure C Establishment charge % Premium |
| £40,000 to £149,999 |
0.5% |
0.95% |
10.15% |
| £150,000 to £249,999 |
0.35% |
0.75% |
9.25% |
| £250,000 to £499,999 |
0.25% |
0.70% |
8.75% |
| Above £500,000 |
0.2% |
0.65% |
8.5% |
|
COMMISSION:
There is a choice of commission structures, depending on the charging structure: |
| Charging structure |
Initial |
Initial and trial |
| A |
6.5% |
4%, plus 0.5% per annum of fund value |
| B |
Not available |
4%, plus 0.5% per annum of fund value |
| C |
6.5% |
Not available |
If the IFA rebates some of their initial commission this can be used to increase the allocation rate from 100% or reduce the establishment charge. Both are on a one for one basis.
The Zurich Financial Services Group (www.zurich.com) provides its customers with solutions in the areas of financial protection (non-life insurance and structured solutions) and asset gathering (life insurance and asset management). The Group focuses its activities on its key markets of North America, UK and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in more than 60 countries and employs approximately 70,000 people.
Zurich International Life is part of Zurich Financial Services, (UKISA) which is part of the Zurich Financial Services Group and comprises the Group's operations in the UK, Ireland and International Businesses.
