Press Release

Paymentshield provides exit strategy for intermediaries

Paymentshield is continuing its policy of offering greater choice and support to intermediaries by introducing new Retirement Buy Out and Commission Buy Out options that will help them plan their future.

Both these initiatives offer greater flexibility of choice in deciding income strategy options and in that respect compliment the recently launched Double Indemnity* commission structure.

Retirement Buy Out (RBO)

Retirement Buy Out (RBO) provides intermediaries who are either retiring or leaving the industry with a cash lump sum upfront in place of the future income stream from their existing portfolio of policies with Paymentshield. Each valuation is individually calculated taking into account several variables, including age of the portfolio, commission structure, historic attrition rates and business mix.

Because the intermediary will no longer be authorised by the FSA their clients will need to be looked after. Paymentshield will manage all aspects of transferring the policyholders to a specialist adviser within its sister company Towergate, keeping customers informed at every stage and ensuring they are provided with a first class level of service.

RBO is available to all Paymentshield intermediaries and there is no minimum commission threshold.

Commission Buy Out

Commission Buy Out also provides intermediaries with a cash lump sum in place of future income from their existing portfolio of policies with Paymentshield; however, unlike with RBO the intermediary retains client ownership.

CBO valuations are again individually tailored taking into account the same business variables as RBO.

CBO is available to key supporters earning from £600 per month in commission from Paymentshield. CBO can be repeated once the £600 per month threshold is reached again, subject to availability.

Sales and Marketing Director of the Southport based insurer Chris Traynor said: "When retiring or leaving the industry, the best options for an intermediary are usually to sell their business or to sell their client book. But these options are not always the most advantageous and that's why Paymentshield has developed an easy third option, Retirement Buy Out."

"In addition, instead of approaching a bank or finance house to raise capital, where security is often demanded, with Commission Buy Out the intermediaries do not need to offer security, produce a business plan and they do not need to pay the money back. Plus the funds released are available for whatever purpose the intermediary's business needs."

"Also any new business sold after the process is complete will continue to earn commission as normal, allowing the intermediary to quickly rebuild a new commission stream. CBO is not just a one off; as soon as the commission stream grows once more to the required level, the process can be repeated."

Paymentshield has set aside £30m for their initial CBO offer. This is already proving very popular with over £16m reserved.

Mr Traynor added: "Paymentshield now has an even more impressive suite of income options demonstrating continued commitment to those intermediaries that have supported us over the years. It's all about choice and what commission options are best suited to the individual. We believe our range of commission options is now unique within the Industry"

-ENDS-

*Double Indemnity pays two years' commission up front on all Paymentshield's policies meaning an intermediary can earn 50% commission up front within one month of the policy start date - Based on current typical commission rate of 27.5%

For all further enquiries, please contact:

Sandy McPherson, Head of Marketing, Paymentshield on 0131 338 5104 or Francis Higney, Higney's PR, on 020 76356068 or 07941979301

Date: 07/04/08

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