L&G is to suspend all new business for its with-profits bonds following poor sales figures.
Although existing bondholders will be able to make top-ups and transfers, the company has decided that as of 1 January, it will no longer be taking on new business.
According to Mike Connolly, PR manager at L&G, the company has contacted advisers to tell them that it will suspend new product sales for with-profits bonds from the beginning of next year.
“The reason is low sales volumes. Extremely low sales volumes, I would say,” said Mr Connolly.
He added that the suspension may not be permanent but is currently indefinite. “We will monitor the market and if we think the market is more favourable we will decide to re-enter, and that is until further notice.”
Although there are still many customers who hold a with-profits bond policy, it appears there is diminishing appetite for consumers to invest in the product.