Although numerous endowment mortgage companies have stated that many of them are unable to meet return expectations, there are a number of companies who seem undaunted by what is happening in the UK market. The issue of returns being reported correctly seems to be the focal point of the whole scenario. However, the returns involving consumers working with legitimate companies have been quite good.David Belsham, the chief actuary at Prudential U.K. stated that policy members have benefited from the financial strength of the company which is due primarily because Prudential U.K. has not been subjected to any solvency requirements.One of the spokespersons for Legal and General, one of the larger home insurance companies within the UK, stated that endowment mortgage surpluses are expected to reach 30 to 40% based on the expectations that maturing policies will be hitting their targeted goals for the year. They also stated that in 2007, their policies also hit their targeted goals which resulted in the same levels of surpluses.Gary Rowe, Norwich Union Life actuary, is claiming that expectations are for nearly 72,000 policies to be maturing during 2008, and roughly 43% of them (or nearly 31,000) will be right on target. Shortfalls for the ones not achieving their targeted goals should be around £1,350 on average. However, those “shortfalls” will be diminished considerably by the fact that £2bn in special bonuses will be awarded to their Commercial Union and General Accident policies.
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