With-profits funds explainedNorwich Union customers

Norwich Union has announced its offer to policyholders after lengthy negotiations

The current offer

Norwich Union has agreed an offer with the Policyholder Advocate which will see policyholders offered payouts totalling around £1 billion for their claim to future ‘special bonus’ payments from the inherited estate, now valued at £2.1 billion.

The amount of money you would receive will depend on the size of your policy, but you will get a minimum of £400 if you accept Norwich Union’s offer. The company has indicated that the average payout will be £1,000 and you should receive a letter from them later this year telling you how much money you will be offered. Each policyholder will be able to decide for themselves whether they want to accept the offer.

Which? has prepared a Q&A for policyholders eligible for the Norwich Union offer. If you would like to receive this, and further updates on the issue please email us.

Am I eligible for a share?

Not all Norwich Union policyholders qualify for the reattribution. If you are eligible, you should have already received a letter from Norwich Union telling you about the inherited estate and saying that a policyholder advocate has been appointed.

If you don't think you've received a letter, you can check your eligibility on the Norwich Union website.

What's happening to the other half?

Norwich Union has recently announced that it will distribute £2.4 billion of its inherited estate on the 90:10 basis. We welcomed this announcement, but there is a problem: Norwich Union wants to pay out the money over a three-year period which means that if your policy matures before 1 January 2010 you won't receive the full amount.

More information

Office of the policyholder advocate - detailed information on the Norwich Union issue, including how to check whether you have a qualifying policy, and a timetable.

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