Aviva unveils details of reattribution windfalls
Thursday 01 October 2009
Some 805,000 customers of Aviva will share in a £470m payout from next month, the insurer said today. Most will receive tax-free payouts of between £214 and £1,230 after voting to relinquish any future claims to the profits generated by the funds that hold their investments.
Individual payouts to customers of the CGNU and CULAC with-profits funds will be slightly higher than expected as the total value of the inherited estate for the reattribution is £1.25bn, more than the minimum level of £1.2bn on which the offer was based.
The reattribution will start in early November and be completed by Christmas, Aviva said. Mark Hodges, chief executive, Aviva UK Life, said: "Our objective has always been to create a reattribution that was fair to both shareholders and policyholders. I'm pleased that we've been able to conclude the process in time for most customers to receive their payments by Christmas.”
But David Trenner, technical director at independent financial adviser Intelligent Pensions said the deal favoured shareholders. “Let's be clear about this, shareholders are getting money that should go to policyholders. Norwich Union/Aviva is still hitting some policyholders with MVRs, yet they have £470m to use to bribe other policyholders to give up their rights to their inherited estate.”
Eligible policyholders had to choose to accept the offer and just over 87 per cent voted during the election process, with 96 per cent choosing to accept the cash offer. Customers who voted “yes” should automatically now receive their payment. The estimated 195,000 policyholders that voted “no” or failed to vote will continue to benefit from any future profits in the funds.
Aviva has already paid two instalments to policies of a £2.1bn bonus announced at the beginning of 2008. The last bonus payment will be added in 2010 and Aviva claimed it will then have allocated the equivalent of around 70 per cent of the value of the inherited estates in the funds to customers.
- 1 Israel-Gaza conflict: 'When Genocide is Permissible' article removed from The Times of Israel website
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 The secret report that helps Israel hide facts
- 5 Israel's propaganda machine is finally starting to misfire
Lost portraits of the Somme: 100 images of Tommies posing before they went over the top. Now can you help to identify them?
Israel-Gaza conflict: 'When Genocide is Permissible' article removed from The Times of Israel website
Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
Pope Francis issues top 10 tips for happiness
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...