Aviva sets out with-profits reattribution terms
Aviva has confirmed details of the reattribution of the with-profits surplus from its CGNU and CULAC funds, having secured High Court approval for the settlement earlier this month.
The final value of the reattribution stands at £1.25 billion and the total payout to policyholders is worth £470 million, meaning that 90% of eligible customers will receive between £214 and £1,230.
Around 805,000 customers will receive payments in all.
Just over 87% of eligible policyholders voted during the election process, with 96% favouring the offer.
Customers who have voted “yes” do not need to do anything further to receive their payments and should start receiving the money from early November.
Most will be able to bank their cash by the end of the year and in the main the payments will be tax free.
Aviva points out that the reattribution comes in addition to the special bonus of £2.1 billion for policyholders announced at the beginning of 2008.
The first two instalments of this have already been added to policies and the final payment will be added in 2010.
Finally, the insurer reminds policyholders that they will continue to receive their normal bonuses regardless of whether or not they have accepted the reattribution offer.
However, those who voted against the offer, or failed to vote, will receive no payout on this occasion but keep their entitlement to any future reattribution from the funds.
The group’s chief executive, Mark Hodges, says: “Our objective has always been to create a reattribution that was fair to both shareholders and policyholders, and that’s exactly what we’ve achieved.”
He adds: “I’m particularly pleased that we’ve been able to conclude the process in time for most customers to receive their payments by Christmas.”
Category: Aviva News, Insurance News
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