Liverpool Victoria announces endowment surpluses

Liverpool Victoria, the UK's largest friendly society, announced today that all of its currently maturing mortgage endowment policies would receive a surplus on top of the mortgage amount covered.

The good news comes amid a climate of misery across the industry for most with-profits customers, whose policies are falling in value, exposing them to mortgage shortfalls.

Earlier this week AXA became the first major provider to tell some of its customers their payouts would be reduced, while Standard Life has also admitted that returns to its 2.4 million with-profits savers will fall again this year.

Malcolm Berryman, Liverpool Victoria's group chief executive, said: "The strong performance of our with-profits fund has ensured a surplus for all of our mortgage endowment policies that have matured or are currently maturing.

"In addition, our unconditional guarantee gives total peace of mind to our members for the future."

The mutual confirmed its guarantee that none of its 6,000 mortgage endowment policyholders will suffer a shortfall, whatever happens to future investment returns.

It said it has already made a financial provision to cover this guarantee so it will not have any adverse impact on future financial performance.

But Liverpool Victoria's assurances are little comfort for the millions of customers with other providers struggling to fill the gaps between their expected payout and their mortgage.

Earlier this week the Actuarial Profession - the body which represents those who run with-profits funds - warned the majority of customers faced falls in value of their policies for several years to come.

The Norwich Union - the UK's biggest insurer - will tell its customers what is happening to their money later this month.