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Aviva kick-starts reattribution voting

Aviva has started mailing voting packs inviting one million eligible policyholders to vote in the proposed reattribution of the firm’s inherited estate.

The packs include a letter detailing the minimum payment for the individual policies.

The firm estimates that 90 per cent of payments will range between £200 and £1,150, with the average being £500.

The amounts offered depend on the value of the policy, the type of policy held and how long the policy has left to run.

The structure of the reattribution means that individual payments to policyholders will rise and fall in line with the value of the inherited estate.

Policyholders can choose to accept or decline the payment in return for giving up their right to future special distributions from the inherited estate.

If approval is given for the reattribution to go ahead, Aviva expects to start mailing payments to policyholders from November this year.

The packs are designed to provide policyholders with the information they will need to make a considered decision.

Policyholders will need to respond with their vote by August 21, ahead of a High Court hearing in September 2009.


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There are 23 comments at the moment, we would love to hear your opinion too.

  1. Aviva
    At least Dick Turpin wore a mask.

  2. Aviva reattribution
    Reattribution is a bullying con-trick designed to pinch policyholders money and pass it to shareholders. the IE should be distributed 90:10 forthwith. Policyholders are being abused by Avva; betrayed by Claire Spottiswoode and desetered by the watchdog with no bark (FSA)

    Upon hearing the thud on the doormat, I will don a blindfold, for the Aviva ‘primers’ on this shabby second-hand deal indicate a blindfold . will be needed for me to consider carefully, and see more clearly, the offer being put before me. Barty

  4. Aviva
    “At least Dick Turpin wore a mask”

    Err? There is a choice here – take the money on offer now or don’t and retain your right for any future distribution of the inherited estate

    You can’t lose – of course you have to accept the consequence of your own decision. But at least it’s your decision.

  5. Aviva
    The IE should be distributed 90:10 as previously mentioned, any other ratio is tantamount to theft. For a company that supposedly puts its Customers first, it appears to have a funny way of showing it. Like most of the financial institutions, the bosses have the cake and we are left with the crumbs, and the FSA Watchdogs are fast asleep!

  6. Aviva Kick Starts reattribuition voting
    Well Aviva has started sending out the voting packs, but how many people will not receive them by the first Policyholders Advocates roadshow on the 23rd June ?. Also Aviva has not told policyholders how difficult the calculation is, which requires three different mathematical sums, to verify if the PIP offer is correct or not. A policyholder will not be able to check the actual value of the PIP before the end of the PA’s road shows, or indeed before the Court hearing on the 14th september. Now after policyholders have waited three years, there is now a rush by Aviva to push this through with insufficient time, for policyholders to digest all the documentation, and indeed to question that information. This is the ypical arogance of Aviva to treat policyholder fairly i.e apply TCF.

  7. Aviva rip off
    I have two eligable policies, both severly underperfoming, and now Aviva intend to raid the funds to pay shareholders for a measly £500 compensation – it’s an absolute disgrace

  8. Aviva
    Talk about being stuck between a rock and a hard place. At the end of the day do we really have a choice? All my policies with Norwich Union (Aviva) seem to have dropped far more that the percentages that we are told. If your policy does not have far to run you either take the measley crumbs or have nothing! Very disappointed!

  9. Aviva reattribution mis-representation of facts
    Aviva is sending a pack explaining to policyholders that they can get a windfall share of an estate that belongs to Aviva share holders; policy holders are told that if they do not want this windfall, they will probably not get anything in the future. This is a shameful representation of the reality as in fact this estate comes from past policy holders contributions, not shareholders, and was built to support the value of the policy holders funds, especially in rough market times. In essence, all this estate should be gradually, year after year, injected into policy holders policies. Aviva’s proposal is to give most of it to shareholders in exchange of a small windfall to the half-informed policyholders. Aviva’s pack does not represent things like this and is akin to mis-selling.

  10. Aviva Reattribution
    So far the policyholder with Aviva has been waiting about 3 years for the reattribution. At the start of the process there was £5.4 in the Inherited Estate (IE). Then without consulting the Policyholder Advoacte Aviva gave £2.1b of this monies to Policyholders (£0.2b to shareolders). Of the remaining £3b only £1.2b (min) is being reattributed so about £1.8b has dissappeared. Of this £1.2b only £0.5b goes to policyholders. Aviva will argue that the £3b has devalued because of the problem with markets.

    So is the reattribution pack that arrives, maybe late, going to tell me that of the original £5.4 b only £2.6b(min) is going to policyholders and the rest to shareholders and the company. I doubt it. That would be far too revealing. Are they going to say we will but your money for half what is was worth 3 years ago, no I don’t think so but that is what will happen if people accept this deal.

    I notice that there ia an advert on the site saying that Aviva is coming. Perhaps someone can tell me why? Is it because as Norwich Union they paid almost nothing to me in 8 years as a policyholder. My assets are in shreds and our 2 policies are in massive deficit. Aviva, do the decent thing and stop this reattribution now, give the policyholders their rightful payment of 90% of the £5.4b that’s £5.1b not £2.6b. If the asset value is too low then lets all wait for it to recover. No one wants a fire sale now.

  11. Don’t Believe the Con Trick!
    It really does beggar belief but there’s every chance that NU/AVIVA are about to get away with stealing money their “valued customers”. The inherited estate has been built up rapidly over the past few years by over-smoothing of the With Profits Funds (and then blamed on poor markets) specifically to be pillaged by shareholders, with the FSA’s blessing, and the majority of policy holders will simply take the “bird in the hand” Shameful!!

  12. The Great with Profits Robbery
    This is part of the con-trick to raid the Inherited Estate not on the 90%-10% Policyholders-Shareholders deal as per Contract.

    But at Great gain to the Aviva Board and Shareholders.

    The whole process has been designed at keeping Policyholders in the Dark.

    This is the latest in a long line we are Not fooled by this Stunt.

    You cannot Fool all the Policyholders all the time

  13. reattribution
    The next change of name will be AV-IT-ALL

  14. what a laugh
    If the money I am likely to receive was not so totally depressing after all the hype, it would be laughable. How can such a Giant promise so much, tie its ‘important clients’ in knots with MVR’s and three year spread bonus’s, make the prize at the end of the rainbow glitter like some diamond, and then flop so impotantly . Aviva have been pushing my cash around as they please for ten years, made it impossible for me to get my hands on it without losing, and slapped me in the face with a wet fish of a prize after so much promise. Why indeed has it cost so much and taken so long to arrive at this paltry sum?

  15. confused
    Our policy is just about worth the money I have paid in. Maybe I should have put the money under my matress – it would have done just as well. Now they offer me £200 and give me a huge amount of literature to make my decision – is it really worth the effort? I suspect many will decide not and take the money. I really have no idea what to do as I really dont understand the options – what will I get in the future if I dont take the £200 now?

  16. Reattribution
    I had hoped to retire at 60 but I’m still working (and in ill health) due to the collapse of the endowment mortgages which has cost me a fortune. It was with profits, what profits surely this windfall could have at least paid in full the amount stated on the policies when they mature never mind the profits. I’m discussed at the lack of concern for the policy holders and what they have lost.

    I would like to see the amount of money we would have received 2 years back when it was first announced. It is not our doing that the financial market has crash. If it had been paid out in full by a cheque when we were notified instead of these 3 payouts maybe we would have had a windfall instead of this paltry sum. Why have they been hanging on to our money?
    I’m 10K short of my mortgage endownment never mind the with profits. So why aren’t they trying to help these policy holders.

  18. Is this a con?
    I have held my Norwich Union Endowment policies for 24 years. They mature next Summer, and all the letters I receive tell me they are under performing. Red or Amber.

    This re-attribution smells like a raid on the reserves similar to what happened to pension plans after privatisation. Legal, but disgusting non-the less. I have yet to receive my ‘offer’ and would like to know my options. I know I can say YES and cash in on a reduced payment. But what happens if I say NO? My policies will mature next year, will the re-attribution money be added to my final payments or will my share simply disappear into shareholders pockets? If anyone can advise me on this it would be appreciated.

  19. I’d like a percentage of what Bruce Willis got
    Having received my ‘generous’ offer from Aviva I’ve finally stopped laughing and realised they’re not joking. Quite where Ms Spottiswoode got her figure of 99% of policyholders would be better off taking the deal is beyond me. I am concerned that our payment figures have no clear breakdown of how they were calculated, horrified that Aviva has being using the Inherited Estate to pay shareholders tax bills and dumbfounded that should we want to complain to the high court Aviva has suggested we use their solicitor. I’ve watched over the years as my bonuses have dwindled, even in good financial climates, whilst Aviva has grown into yet another multinational leech that seems to think customer money is there for the taking. I will be voting NO since a vote of YES seems to give the shareholders carte blanche over what to do with the inherited estate (although they seem to have being using this as their personal piggy bank for some time). I also think that Aviva policyholders should get together and take this greedy company to court if only to find out what exactly they’ve been doing with our money over the years.

  20. Yes or No …who knows?
    Yes, I agree with all the comments so far. We all feel the same. My policy ends very soon and may somehow just about cover the loan,well it’s only been 24yrs!!.
    I did not know whether to say yes or no because there’s no real advice. I thought that ‘Yes’ might be a good idea because at my age I might die before I see a penny!
    This smacks of dodgy dealing and makes me feel that we are somehow being taken for a ride and that an unnecessary web of complications has been spun over the years to confuse us. Of course , now I have said ‘Yes’ I can’t change my mind,so it’s a case of waiting to marvel at the amazing cheque I will hopefully receive this year. When I took this endowment out I was promised…yes ‘promised’ it would pay my mortgage with a minimum of £12,000 in hand…’just like a bank account with good interest’….Yeah…right!

    Good luck to all

  21. It’s no choice
    Having read Aviva’s “it’s your choice” booklet it seems to me that there’s no choice if your policy’s only got a few years to run – you have to take their offer. After your policy matures you won’t be eligible for any reattribution payment.

    They say it’s unlikely there will be another offer in the medium term. Not sure what they mean by “medium” but I’m guessing it’s longer than the 6 years I have left on my policy!

    But I’m no financial expert so please let me know if I’m interpreting this wrongly.

  22. Reattribution
    Can anyone out there please advise what is the best thing to do. Perhaps Martin Lewis can advise us. Is anything ever straight foward or has everything always got to confuse us after all the years we have paid into these policies.

  23. …the same old same old
    Like Stephen said earlier on, I should have left my money under the matress… would have been more use. Will I actually get back the monies I put in. Looks like I’ll not be paying off my mortgage with that little accumulator, better off down the bookies, Maybe I’ll take my £375 down to Ladbroks to see if I can do better that Aviva, shouldn’t be too hard. Hey Aviva, go read Matthew 25:14-30, weeping and gnashing of teeth coming your way!!

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