1. Page 9 - "The inherited estate provides working capital for the WP fund" Can the inherited estate arising from WP fund 1 be also used as working capital for other WP funds? Can inherited estate be used outside of the WP fund e.g. to support other needs of the company? 2. Page 11 - Mutual companies Where does the original capital injection come from?
Money within a 90:10 WP fund is basically owned 90% by the WP policyholders of that fund and 10% by shareholders. Therefore it would not normally be appropriate to use the capital in a WP fund for purposes other than relating to that fund. UK mutual companies originated from organisations into which initial contributions were pooled from a number of individuals who were then provided with protection from that pool of money, as and when needed. Capital contributions were also received from wealthy benefactors, being seen as charitable gifting of funds in order to provide the less well-off with income during sickness or money to pay for funeral costs.
