Aviva progresses reattribution offer for NU policyholders
by Gill Montia
Aviva is inviting Norwich Union with-profits policyholders to vote on the proposed reattribution of surplus funds.
Negotiations over the reattribution have dragged on for well over a year because of a dispute over the proportion of the surplus that should be paid to shareholders.
In July 2008, Aviva announced that it was prepared to pay an average £1,000 per policy to around one million customers who had invested in GCNU Life or CULAC with-profits funds before November 21st 2006.
However, in May the group cut the total payout at £400 million, saying market volatility had reduced the value of the fund significantly since the offer was agreed.
The company is now proposing payments of between £200 and £1,150 per policyholder but those who opt to receive the windfall will renounce any future share of the surplus pot by doing so, whereas savers who opt out of the process will continue to receive annual bonuses.
The policyholder advocate, Claire Spottiswoode, has approved the offer and payments are promised in November 2009.
Voting packs are being sent out to individual policyholders along with details of the amount they can expect to receive.
Policyholders need to respond by 21st August.