High Court approves Aviva’s reattribution offer
Aviva has been successful in securing High Court approval for the proposed reattribution of its with-profits surplus.
With-profits policyholders holding CGNU and Culac policies that were in force on November 21st 2006 should now receive between £200 and £1,000 before the end of the year, tax free.
In return beneficiaries will surrender any future interest in the funds’ surpluses.
Negotiations over the settlement have taken a couple of years because of a dispute over the proportion of the surplus that should be paid to shareholders.
Over time, the funds lost value as a result of market volatility in the credit crisis and in May, Aviva fixed the total payout at £400 million rather than the £1 billion promised earlier.
Consumer association Which? is less than happy with offer, and a group of policyholders attended court to oppose Aviva’s plans, accusing the insurer of suppressing the voices of dissenting policyholders and stage-managing its roadshows on the reattribution.
However, policyholder advocate Clare Spottiswoode, who had battled long and hard to secure around 70% of the surplus for policyholders, at the cost of shareholders, has approved the deal.
Policyholders have until 21st September to indicate whether they will take part in the reattribution.
Those who do not will retain their right to any future reattribution of the fund’s surplus but Aviva is unlikely to embark on another reattribution for many years.
Category: Aviva News, Insurance News
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