US investment and insurance company The Hartford, which claims to be the world’s number one provider of unit-linked investment bonds, launched in the UK at the beginning of the month with promises of market domination and a hazy outline of a forthcoming structured product.The provider, which has almost $300bn under management, is planning a capital-guaranteed unit-linked investment bond for the second quarter. The Hartford would not reveal full details of the product, which it said is being trialed with distributors, but the underlying is thought to be a diversified basket of externally-managed funds. It will be fully capital protected.
The Hartford said it intends to take advantage of consumer and distributor disenchantment with the level of service in the UK market to replicate its success in Japan, where it has raised $14.7bn in four years.
It intends to create distribution arrangements with every major independent financial advisor firm bank and building society in the UK. “We are such a big name in the US, it has not been a struggle to get through the door,” said a spokesman.
“Our research of the UK market place has revealed widespread disillusion with the level of service being received by advisers and customers alike,” said chairman Greg Boyko. “By delivering excellence in this area we see this as a real opportunity to differentiate ourselves in this market… We aim to set a new standard for the UK financial services industry to be measured by,” he said. The Hartford’s US operation has won awards for its high standards of service.
The UK operation will be run by Lincoln Collins, chief executive of Hartford Life, John Enos, managing director of marketing, and Adam Dooley, managing director of sales. A call centre will be based in Dublin.
