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.”