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Aviva set to pay £470m as reattribution completes

Aviva has completed the reattribution of the inherited estate in its CGNU and CULAC with-profits funds and is set to pay out a total of £470m to over 800,000 customers.

The total value of the inherited estate for the reattribution was £1.25bn.

The completion of the reattribution deal follows the High Court’s approval of the firm’s offer in September and final approval by the Aviva plc and Aviva UK Life boards.

Aviva will start to mail cheques to customers next month. It expects most policyholders to receive their payments by Christmas.

Over 87 per cent of eligible policyholders voted during the election process, with 96 per cent accepting the offer, Aviva says. Those who chose not to accept the payment are unaffected by the reattribution.

In return for the £470m paid to policyholders, which comes from shareholder funds rather than the with-profits funds, shareholders are expected to gain access to around £650m of additional capital over the next five years, to fund the writing of new business.

Which? principal policy adviser Dominic Lindley says: “Policyholders should have had a much bigger slice of the inherited estate. Instead, the FSA has allowed Aviva to plunder the estate for the benefit of its shareholders.

“People whose investments are about to mature and are facing massive endowment mortgage shortfalls will have had little choice other than to accept the deal.”


Data divisions

The FSA has published a raft of data on complaints between 2006 and 2008 and Dan Waters said: “Transparency is an important regulatory tool. Publishing this information will mean consumers and firms can see how many complaints the industry receives and how it deals with them.”

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By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]


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