With-profits funds explainedNorwich Union customers
Norwich Union to renegotiate
Norwich Union is cutting the amount offered to policyholders for their rights to the inherited estate.
In July 2008 Norwich Union announced that it would offer policyholders payouts totaling around £1 billion for their claim to future ‘special bonus’ payments from the inherited estate.
However it has now said that the value of the inherited estate has dropped significantly and it is seeking to renegotiate its offer. This will cut the amount offered to policyholders. Norwich Union announced in March 2009 that it would notify policy holders 'in the next few months' if a new deal is agreed.
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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