With profits

The information below relates to the OneFamily (EM) With Profits Fund, and does not apply to the OneFamily (ELL) With Profits Fund.

Our 2021 OneFamily (EM) With Profits Fund performance

The fund is currently managed by grouping policies together according to product type and the time period until the next guarantee date. An asset mix (combination of investments) is then determined for each group of policies based on the amount of guarantees in relation to asset shares, and the time period until the next guarantee date.

The underlying investment performance in 2021 was 4.04% for most groups of policies.

See "OneFamily (EM) With Profits - asset mix" in the table below for more information.

Investment returns and policy payouts

The groups of policies and the underlying asset mix are reviewed on a regular basis.

The investment return earned by the underlying assets of each group of policies is used in the asset share calculations. For each with profits policy, the asset share is its overall fair share of the value of the assets in the applicable underlying asset mix.

Policies with high levels of guaranteed benefits in relation to their asset share and which are close to the guarantee date are more likely to be invested in fixed interest investments.

This is intended to help protect policies near the end of their term from any major downturns that might occur when invested in higher risk/higher growth assets.

Policies where the guaranteed benefits are not such a constraint and/or have a longer period until the guarantee date are more likely to be in higher risk/higher growth based investments which have greater growth potential over the long term.

See the current groupings and "OneFamily (EM) With Profits - asset mix" in the tab below for more information.

Please note: past performance is not a reliable indicator of future results. Your investment may go down as well as up and you may not get back the full amount of your original investment.

What this means to individual policyholders

It is important to remember that the fund performance in any one year isn’t directly reflected in a customer’s policy, due to the smoothing process that is a feature of a with profits investment.

Investment returns achieved by the fund will vary over time and there will be periods when investments may do very well, but other periods when they may perform badly. The smoothing process holds back some of the fund growth from good years to help cushion against years where performance of investment markets may not be so good. In effect, it helps to smooth out some of the short term variations in performance.

To understand how this may affect the payout on policies invested into the with profits fund please see our Principles & Practices of Financial Management (PPFM) for the OneFamily (EM) With Profits Fund which aims to explain how we manage the fund in relation to different sorts of with profits policies. This should be read in conjunction with the fund’s current investment mix.

For holders of the Protected Investment Bond and Protected Loyalty Bond with invest into the OneFamily (EM) With Profits Fund, please see our Principles & Practices of Financial Management (PPFM) for the OneFamily (EM) With Profits Fund which contains important information about how the Protected Investment Bond and Protected Loyalty Bond work.

If you have any questions about your policy please contact our customer contact centre on 0800 169 4321

This summarises the current investment position of the With Profits Fund. To understand how this may affect the payout on your policy it should be read in conjunction with our Principles & Practices of Financial Management (PPFM) for the OneFamily (EM) With Profits Fund which gives more detailed and technical information about how we manage this With Profits Fund.

Overall With Profit asset mix

We monitor the asset mix for the Fund, and for different policy groups, on a regular basis, and will change the asset mix, depending on:

• The total amount of policy guarantees, and when these guarantees are likely to arise
• Our view of investment market conditions
• The overall financial strength of the Fund (or in other words, the size of the additional assets over and above what is required to meet policyholder benefits and cover other business risks).

The overall asset mix of the OneFamily (EM) With Profit Fund as at 31 March 2022 was:

Investment returns and policy payouts

The investment return used in asset share calculations is based on the assets backing the with profits policies. As explained in the Principles & Practices of Financial Management (PPFM) for the OneFamily (EM) With Profits Fund, we group together with profits policies with similar characteristics and use asset shares as the basis for determining policy payouts. The current practice is to group policies together according to product type and the time period until the next guarantee date.

An asset mix is then determined for each group of policies, based on the amount of guarantees in relation to asset shares, and the time period until the next guarantee date. The investment return earned by the assets that have been notionally allocated to each group of policies is then used in the asset share calculations.

For each With Profits policy the asset share is its overall fair share of the value of the assets in the applicable underlying asset mix. The groups of policies and the underlying asset mix are reviewed on a regular basis.

Managed by Insight Investment Managers, the aim of the fund is to deliver positive returns on an annual basis with the prospect of long-term capital growth by following a broad 'multi-asset' portfolio approach.

The information below relates to the OneFamily (ELL) With Profits Fund, and does not apply to the OneFamily (EM) With Profits Fund.

Our 2021 OneFamily (EELL) With Profits Fund performance

The fund is currently managed by grouping policies together according to product type and the time period until the next guarantee date. An asset mix (combination of investments) is then determined for each group of policies based on the amount of guarantees in relation to asset shares, and the time period until the next guarantee date.

The underlying investment performance in 2021 was 5.62% for most groups of policies.

See "OneFamily (ELL) With Profits - asset mix" in the table below for more information.

Investment returns and policy payouts

The groups of policies and the underlying asset mix are reviewed on a regular basis.

The investment return earned by the underlying assets of each group of policies is used in the asset share calculations. For each with profits policy, the asset share is its overall fair share of the value of the assets in the applicable underlying asset mix.

Please note: past performance is not a reliable indicator of future results. Your investment may go down as well as up and you may not get back the full amount of your original investment.

What this means to individual policyholders

It is important to remember that the fund performance in any one year isn’t directly reflected in a customer’s policy, due to the smoothing process that is a feature of a with profits investment.

Investment returns achieved by the fund will vary over time and there will be periods when investments may do very well, but other periods when they may perform badly. The smoothing process holds back some of the fund growth from good years to help cushion against years where performance of investment markets may not be so good. In effect, it helps to smooth out some of the short term variations in performance.

To understand how this may affect the payout on policies invested into the with profits fund please see our Principles & Practices of Financial Management (PPFM) for the OneFamily (ELL) With Profits Fund which aims to explain how we manage the fund in relation to different sorts of with profits policies. This should be read in conjunction with the fund’s current investment mix.

If you have any questions about your policy please contact our customer contact centre on 0800 169 4321

This summarises the current investment position of the With Profits Fund. To understand how this may affect the payout on your policy it should be read in conjunction with our Principles & Practices of Financial Management (PPFM) for the OneFamily (ELL) With Profits Fund which gives more detailed and technical information about how we manage this With Profits Fund.

Overall With Profit asset mix

We monitor the asset mix for the Fund, and for different policy groups, on a regular basis, and will change the asset mix, depending on:

• The total amount of policy guarantees, and when these guarantees are likely to arise
• Our view of investment market conditions
• The overall financial strength of the Fund (or in other words, the size of the additional assets over and above what is required to meet policyholder benefits and cover other business risks).

The overall asset mix of the OneFamily (ELL) With Profit Fund as at 31 March 2022 was:

Investment returns and policy payouts

The investment return used in asset share calculations is based on the assets backing the with profits policies. As explained in the Principles & Practices of Financial Management (PPFM) for the OneFamily (ELL) With Profits Fund, we group together with profits policies with similar characteristics and use asset shares as the basis for determining policy payouts. The current practice is to group policies together according to product type and the time period until the next guarantee date.

An asset mix is then determined for each group of policies, based on the amount of guarantees in relation to asset shares, and the time period until the next guarantee date. The investment return earned by the assets that have been notionally allocated to each group of policies is then used in the asset share calculations.

For each With Profits policy the asset share is its overall fair share of the value of the assets in the applicable underlying asset mix. The groups of policies and the underlying asset mix are reviewed on a regular basis.