Aviva reattribution dissenters attend High Court

by Gill Montia

Story link: Aviva reattribution dissenters attend High Court

A group of Aviva policyholders will have their grievances heard in the High Court today, as the insurer seeks legal approval for the reattribution of its with-profits surplus.

Aviva is proposing that a windfall of not less than £200 and up to £1,150 be paid to with-profits policyholders holding CGNU and Culac policies that were in force on November 21st 2006.

In return beneficiaries will surrender any future interest in the funds’ surpluses.

Negotiations over the reattribution have taken a couple of years because of a dispute over the proportion of the surplus that should be paid to shareholders.

Market volatility in the credit crisis meant that the funds lost value as the row with policyholder advocate, Claire Spottiswoode, dragged on and both policyholders and consumer group Which? have expressed disappointment at the final offer.

According to a report in The Independent, a small group of policyholders will give evidence at the High Court hearing today when they will accuse Aviva of having suppressed the voices of dissenting policyholders and having stage-managed its roadshows on the reattribution.

Last month, Aviva extended the deadline for its ballot on the reattribution by one month, to 21st September.

At the time the group announced that three-quarters of the one million votes were are already in, with 96% in favour of its offer.

It can be argued that announcing the progress of a ballot before all the votes are in is divisive, and no doubt Aviva had its reasons.