We use cookies to give you the best possible experience online. By continuing to use our website, you agree to receiving our cookies on your web browser. Visit our cookie policy page to find out more and how to change your cookie settings.

skip to main content

With-profits policyholders

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 in 2016 with further annual distributions also expected.

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.

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).

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’.

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

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.

2016 Annual Report from the LVFS Board

Your guide includes information on:

  • What the with-profits fund is
  • The aim of the with-profits fund
  • How the with-profits fund works
  • How returns on policies are decided
  • What bonuses are paid


The LV= With-Profits Committee, which is a sub-committee of the main LV= Board, 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 Fund

The asset management of the Fund, other than some of its property investments, is currently undertaken on our behalf by BlackRock Investment Management Limited. They are responsible for the day-to-day management of the assets, operating in accordance with our investment strategy. Our aim is to maximise long-term returns subject to ensuring that we can meet our obligations to policyholders and to remaining financially strong. How much you get back will depend on a number of factors including how long you have held your investment, the types of asset held by the Fund and how well these assets perform and any distributions of Special Bonus. The mix of assets may change over time.

The target asset allocation of the pool of assets in the Fund backing the main benefits under Teachers with-profits policies is:


Target %

UK equities


Overseas equities




UK gilts


Corporate bonds






The Fund also contains a separate pool of assets with a long-term investment strategy of investing in fixed interest-bearing securities and cash. Any distributions of Special Bonus are invested in this pool of assets. The ‘inherited estate’ (excess assets) of the Fund is also invested in this pool. Note that distributions of Special Bonus are not guaranteed and the current value of Special Bonus may be reduced or withdrawn at any time if the inherited estate of the Fund is excessively reduced, or in adverse market conditions.

Contact us

For queries relating to life policies please call:

0800 056 0563

9am - 5pm Monday to Friday

We may record and / or monitor calls for training and audit purposes.

Fund prices

If you have a unitised with-profits policy, take a look at our current fund prices.

Looking for more general information?

Teachers Pension

Got a question about your final salary pension? Contact Teachers Pensions using your members login or call 0345 6066166 (8.30am – 6pm Monday to Friday).

Pension Planning

Our pension information hub includes videos and FAQ's to help you better understand your Teachers pension.