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Information on our With-profits fund

Information on our With-profits fund

About With-profits policies

  • The Teachers Assurance Fund holds the with-profits policies transferred from Teachers Assurance to LV=. The policies and assets in the fund are held separately from the rest of LV=. We're aiming to distribute the excess assets held in the Teachers Assurance Fund to the with-profits policyholders over time as a Special Bonus.
  • There was an initial distribution on 1 June 2016 with further distributions made quarterly since 1 June 2017.
  • There aren’t any shareholders in the Teachers Assurance Fund – which means that we use all the profits to benefit the with-profits policyholders invested in the Fund.

Here's what you need to know

Including our Principles and Practices of Financial Management (PPFM)

Your guide to how we manage the Teachers Assurance Fund for with-profits business

This guide explains how we look after the with-profits business within the Teachers Assurance Fund (TA Fund).

You’ll find important information about how the policies invested in the fund work – and how we manage them. 

 
Download the guide (PDF, 1.7MB)

    Our principles and practices

    Every company that offers with-profits investments has to document the principles and practices (the beliefs and behaviours) they use to manage these investments. This document is called the Principles and Practices of Financial Management (PPFM) and can be downloaded below.

    The PPFM is a technical document but a customer friendly version is also available. This is called ‘Your guide to how we manage the Teachers Assurance Fund for with-profits business (PDF, 1.6MB)’.

    Download our principles and practises

      Principles and practices annual report

      Each year a report is produced on how the with-profits fund has been managed compared to the PPFM. The latest report can be downloaded below.

      Download the 2023 annual report (PDF, 635KB)

        Summary of changes

        The PPFM is regularly reviewed and changes are sometimes made. When significant changes are made the Teacher Assurance policyholders are informed. Below is a summary of all the changes made since 2016:

        Teachers Assurance PPFM - Summary of Changes

        Summary of changes

          governance

          The LV= With-Profits Committee

          is a sub-committee of the main LV= Board, which provides independent judgment on material issues in assessing compliance with the Teachers Assurance Fund PPFM.

          • The With-Profits Committee must include a Teachers Nominee who is independent of LV=.
          • For more information on the role of the
            With-Profits Committee, take a look at our useful documents on this page which includes the terms of reference.

          Asset allocation of the Teachers Assurance (TA) Fund

          Plant, toy, and a piggy bank
          The TA Fund is an investment fund where we combine your money with other investors’ money and manage it on your behalf.

          The general asset management of the TA Fund is undertaken on our behalf by BlackRock. BlackRock are responsible for the day-to-day management of the assets in the TA Fund, operating within the strategic parameters we have determined.
           
          Our aim is to maximise long-term returns subject to ensuring that we can meet our obligations to policyholders and to remain financially strong. In order to manage this we split the assets of the TA Fund into two pools of assets as follows:
           
          • The with-profits fund, which invests in a wide range of assets. We use this to help determine the main benefits of your with-profits policy.
          • The estate fund, a separate fund which includes the ‘inherited estate’ and your allocation of special bonus. This fund has a long-term investment strategy of investing in a mix of fixed-interest securities and cash. 

          The with-profits fund is the continuation of the pool of assets Teachers Provident Society Limited (TPS, known as Teachers Assurance) used to help determine policy benefits prior to the transfer to LV=. It is split into three sub-funds for different products which all have the same target asset allocation. The three sub-funds are: 

          • Conventional with-profits (covering all conventional with-profits policies);
          • Unitised with-profits taxable (covering Teachers Anniversary Bond, Regular Savings Plan, Guaranteed Savings Plan); and
          • Unitised with-profits tax exempt (covering Tax Exempt/ Tax-Free Savings Plan, Guaranteed ISA).

          The actual asset allocations of the sub-funds differ from time to time for practical reasons.

          Find out more about Asset allocation of the Teachers Assurance Fund

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