Understanding With-Profits
The Financial Services Authority (FSA) requires companies to establish and maintain Principles and Practices of Financial Management (PPFM) to govern the conduct of their with-profits business.
The document below describes the principles and practices that NFU Mutual applies in managing its with-profits business.
NFU Mutual's principles and practices of financial management ( pdf approx 125Kb)
We have also produced an appendix to the PPFM. This contains additional useful information about our with-profits business.
Appendix to the PPFM ( pdf approx 45Kb)
The document below summarises the changes we made to our PPFM on 1st February 2008.
Summary of changes ( pdf approx 31Kb)
Below is a shorter, more customer friendly version of our principles and
practices of financial management (PPFM):
NFU Mutual's customer friendly principles and practices of financial
management (CFPPFM) ( pdf approx 87Kb)
It is now an FSA requirement that, at the end of each financial year,
Directors make a formal statement to their with-profits policyholders
confirming that they have acted in accordance with their firm's PPFM and
that discretion exercised by the firm has been applied in a fair and
reasonable manner. In addition, the With-Profits Actuary must state that,
in his opinion, the interests of the with-profits policyholders have been
taken into account in a reasonable and proportionate manner. Our report
for 2006 is attached below:
2006 report to With-Profit Policyholders ( pdf approx 168Kb)
In order to view these documents you will need Acrobat Reader on your PC.
If you do not already have this, you can get it free by clicking on the following link:
http://www.adobe.com/products/acrobat/readstep2.html

Realistic balance sheet
The with-profits "realistic basis" financial statement shows the long-term business fund assets that are available to cover liabilities relating to with-profits business after meeting liabilities on other long-term business.
Find out more
Investment strategy for with-profits business
For more information about NFU Mutual's investment strategy for with-profits business click here.
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