NU with-profits reattribution offers £1,000 per policyholder
by Gill Montia
The lengthy matter of the reattribution of Norwich Union’s with-profits surplus looks close to a resolution, as the insurer’s parent company, Aviva, announces that it is prepared to pay a windfall that would average £1,000 per policyholder.
The customers eligible for the payout are those who invested in GCNU Life or CULAC with-profits funds before November 21st 2006.
To meet the qualifying criteria, they need to remain in the funds for the date of the reattribution, which has not yet been set but is likely to be in early 2009.
Payments will be calculated according to the size of a policyholder’s investment and its maturity date.
According to Aviva, around 700,000 customers should receive between £400 and £1,000, while a further 220,000 will receive between £1,000 and £3,500.
Taking into account Aviva’s promise earlier this year to pay a special bonus to policyholder, the reattribution offer splits the surplus cash between policyholders and shareholder 70%:30% in favour of policyholders.
A dispute over this ratio has delayed the payout for two years as consumer groups and policyholder advocate, Clare Spottiswoode, battled for policyholders to receive the major share.
Full details of the offer and eligibility can be found on the Norwich Union website.