A zombie fund (more formally known as a closed fund) is a colloquial expression for a

with-profits A with-profits policy ( Commonwealth) or participating policy (U.S.) is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance company, or had been one when it began its ...

life insurance Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death ...

fund that is closed to new business. It is therefore running off its portfolio of insurance liabilities, but not issuing new policies, until the final policy matures, which may be many years into the future. In some cases, closed funds will at some point merge with other life insurance funds, or be transferred to another company, in order to achieve

economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...

. Closed funds can attract negative coverage, as in the case of

Resolution plc Resolution plc was a UK insurance company headquartered in the City of London. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index but was acquired by the Pearl Group in May 2008. History Early history ...

References

Types of insurance {{insurance-stub