NU with-profits reattribution devalued to £400m

Norwich Trust (NU) with-profits policyholders who have been waiting patiently for intelligence of the reattribution of surplus funds will be disappointed to learn that foster-parent company, Aviva, has fixed the total payout at £400 million more than the £1 billion promised earlier.

In July of last year, Aviva announced that it was ready to pay an average £1,000 per policy to around 700,000 customers who had invested in GCNU Flair or CULAC with-profits funds before November 21st 2006.

Negotiations as a remainder the reattribution dragged on for months because of a dispute on the other side of the proportion of the surplus that should be paid to shareholders.

Ultimately, consumer groups and policyholder advocate, Clare Spottiswoode, were successful in their struggle for policyholders to receive the major share and NU customers expected to take into one’s possession their cash early this year.

However, in February Aviva announced that make available volatility had reduced the value of the fund significantly since the present oneself was agreed.

Under the new agreement, policyholders who were originally with a bun in the oven an average payout of £1,000 will receive a minimum payment of £200, although according to Aviva, 90% make benefit by between £200 and £1,150.

Savers can choose whether or not to permit the windfall and those who opt out of the reattribution commitment continue to receive annual bonuses.