Windsor Life Assurance
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This page relates to the Windsor Life With Profit Fund

Market Value Reductions for With-Profits Policies

In some circumstances, an adjustment may be applied to claims on Unitised With Profits (UWP) policies, which reduces the claim value to below the nominal value of attaching with-profits units. Such an adjustment is known as a Market Value Reduction (MVR). An MVR will not be applied on maturity, death or regular withdrawal initiated at outset.

The Company applies MVRs in order to protect the interests of continuing policyholders in the fund. The Company will normally consider applying an MVR when the market value of the assets backing UWP policies is below the nominal unit value, and in particular where there is a high volume of surrenders of UWP policies. The rate of any MVR applying from time to time may be varied frequently by the Company.

You can find more information about how MVRs are applied to UWP policies in the Windsor Life With Profit Fund in our Principles and Practices of Financial Management (PPFM) Document which is available by clicking here.

It is most likely that we'll need to apply an MVR following a large or sustained fall in stock markets, or after a period where investment returns are regularly below the level we normally expect. The decision will depend on how large the difference is between the price of your units and the market value of your share of the investments in the with-profit funds at that time. An MVR may apply if you chose to move your investment out of our with-profit funds. A tick in the table below shows the circumstances when an MVR may be applied:

Circumstance Generic Product Type
Pension Investment Bond Endowment Whole of Life
Assignment of a life policy.        
Maturity of a life policy.      
Full surrender of a life policy.
Partial surrender of a life policy.
Regular withdrawals, where initiated at outset.      
Death of policyholder.        
Fund switching out of Unitised-With-Profits fund into an alternative investment fund.
Pension Vesting (i.e. buying an annuity).    
Deferring retirement at Normal Retirement Date.  
Pension Transfer to another company.
Retirement before Normal Retirement Date.


MVRs may be applied from time to time and you should check before you surrender or transfer a policy. If you need further information on your Plan call us on 0870 887 3333. If you are calling from outside the UK, please call 00-44-1952-292929. Please have your policy number to hand.

The table below details our Market Value Reductions in the Windsor Life With Profit Fund as at 1st December 2006.

Product Market Value Reductions
(% of fund)
Preserve & Profit- Series 1 Nil
Preserve & Profit- Series 2 Nil
Preserve & Profit- Series 3 Nil
Preserve & Profit- Series 4 Nil
Preserve & Profit- Series 5 Nil
Preserve & Profit- Series 6 Nil
Preserve & Profit- Series 7 Nil
Preserve & Profit- Series 8 Nil
Preserve & Profit- Series 9 Nil
Mortgage Endowment - Series 1 Nil

Past performance is not a guide to the future. The value of an investment may fluctuate and is therefore not guaranteed. For current Bonus Rate information for the Windsor Life With Profit Fund, please click here.

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