With Profits policies were taken out by millions of people up to the 1980s before their popularity started to wane as more and more insurance companies started to concentrate their efforts on unit-linked investments.

But, then, a number of high profile With Profits policies started to fail their investors dramatically. Equitable Life, Pearl Assurance, London Life, NPI and many more With Profits funds suffered as a result of over-enthusiastic investment claims, high guarantees, unsustainable payouts on maturing policies and general mismanagement.

During the 1990s and into the Millennium investment returns from With Profits funds have fallen dramatically.

A significant number of With Profits funds have not declared an annual bonus for years, with many others declaring a bonus of only one or two percent. Pearl Assurance hasn’t declared an annual bonus since 2003 whilst clerical Medical have announced an annual bonus rate for 2009 of just 0.12%.