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NEWS: AVIVA REATTRIBUTION
Over the coming weeks a number of eligible clients will be receiving a letter from Aviva (Norwich Union) inviting them to vote on reattribution.
Aviva is looking to reorganise and simplify their worldwide operations by proposing to transfer policies of CULAC (Commercial Union), CGNU (including General Accident) Life and Norwich Union Life RBS Limited into one Aviva Company.
In addition they are looked to reattribute part of the inherited estates of the CGNU Life and CULAC With Profit funds. Inherited estate is money that has been built up in a With Profits fund over many years, which is above the amount expected to be needed to meet current and future commitments.
If a reattribution goes ahead, eligible policyholders who vote ‘YES’ will receive an incentive payment in return for giving up their interest in any potential future special distributions from the inherited estate.
Policyholders who vote ‘NO’ or don’t vote will not receive the incentive payment, but retain their interests in any future special distributions from the inherited estate. The timing and value of any such special distributions are uncertain.
The Policyholder Advocate, Clare Spottiswoode CBE, is an independent external representative whose principal role has been to represent the interests of With Profits policyholders in relation to the reattribution. In her role Clare states that for the great majority of policyholders the offer is more than they might expect to receive from possible special distributions in the lifetime of their policies. We see no reason to disagree with Clare.
If you require any further information please do not hesitate to contact us or further comprehensive information can be viewed at