The life insurers are finding that some of the new products they sell are not making anywhere near the margins their older products used to make.
We've seen quite good sales figures from all the UK life insurance stocks. It looks like people are buying savings products once more and the sector seems to be performing relatively well again now after a tough few years.
Market confidence towards savings products seems to have returned. As a result, the life insurance sector is getting back on track after a couple of tough years.
All the life insurers have got to get used to the fact they are no longer writing business at the same high margins they used to six or seven years ago, when they wrote a lot of with-profits business.