Norwich Union - Reattribution

JohalaReewi · 22 January 2009 at 1:34PM

Myrmidon_J wrote: »

A 'With Profits' fund is not fully guaranteed, so its value will fluctuate in line with the market. In the toughest ever trading conditions (according to most informed observers), it is likely to "fluctuate" (go down) quite a bit.

Isn't this what the 'inherited estate' is supposed to be for? To prop up the dips when the market fluctuates?

dunstonh · 22 January 2009 at 1:49PM

3 bad years cancel out 5 good
very convenient

Yes. Norwich Union caused the global downturn and are to blame for market performance just so it would be convenient for them.

Isn`t Ringo being paid then?

Of course he is. Not that its yours or my problem. He is entitled to be paid for what he is done.

You are not a shareholder so how NU spend their own money is not your business. Buy some shares, become an owner and you then have a right to an opinion.

alared · 22 January 2009 at 3:20PM

WP products are supposed to be designed to smooth things out over a period of time.
When you get good years,extra should be added and on a bad year less added.
If 3 bad years can cancel out 5 good then the only conclusion one can draw is these products are not worth a toss and should be withdrawn.

These products are marketed and sold on their low risk and smoothing out effect which clearly they are not.
Like endowments and pensions,they are sold for fat commissions.

dunstonh · 22 January 2009 at 3:29PM

WP products are supposed to be designed to smooth things out over a period of time.

Correct.

When you get good years,extra should be added and on a bad year less added.

Wouldnt that be nice. A bad year and still get money.

If 3 bad years can cancel out 5 good then the only conclusion one can draw is these products are not worth a toss and should be withdrawn.

I suggest you look up and learn about investing. It seems you want to compare investing with saving. Investments zig zag in value. The NU WP funds on my books performed better than unit linked funds of a similar risk profile over the last year and 2 years. Don't knock something you dont understand.

These products are marketed and sold on their low risk and smoothing out effect which clearly they are not.

They are not low risk. They range from low/medium to medium depending on whether there is potential for an MVR or not.

Like endowments and pensions,they are sold for fat commissions.

Really? What is your evidence for that? BTW, your answer will be none as you have none and you are wrong.

alared · 22 January 2009 at 3:57PM

Winter 2008 / spring 2009Policyholder election period.By end December 2008First special distribution bonus applied.Spring 2009High Court hearing.Summer 2009Payment to policyholders who accept Norwich Union’s reattribution offer.By December 2009Second special distribution bonus applied.By December 2010Third special distribution bonus applied.

Is the above still on track and have ANY payments been added to policies yet?
There was talk of a payment equal to 3.25% of the policy value being added at the end of last year,has this happened?

lolly1963 · 22 January 2009 at 4:48PM

Hi,
I can confirm that the first special bonus HAS been added to my WP endowment as of last year(2008). I telephoned them again this week to check. Unfortunately though policies have been adjusted because of market conditions, so although the bonus was good this year, values have been adjusted to reflect this.
I was told they are on track to pay out cheques for reattribution in the summer averaging £1000 hopefully to my policy. We shall see though.
Cheers
Lorraine

alared · 22 January 2009 at 6:19PM

Thanks Lorraine

I do hope you are correct about the £1k this summer.
This re-distribution has been going on for nearly four years and NU,who were as keen as mustard at the start,(mainly because of the lion`s share they would get) have done nothing but drag their heels ever since.
Obviously,the`re not going to get as much out of it as first thought.
I`ll believe it when the cheque arrives.

Geoffo_M · 22 January 2009 at 6:55PM

lolly1963 wrote: »

Hi,
I can confirm that the first special bonus HAS been added to my WP endowment as of last year(2008). I telephoned them again this week to check. Unfortunately though policies have been adjusted because of market conditions, so although the bonus was good this year, values have been adjusted to reflect this.
I was told they are on track to pay out cheques for reattribution in the summer averaging £1000 hopefully to my policy. We shall see though.
Cheers
Lorraine

It's a shame that online valuations are not available. It would make it easier to keep an eye on what has been added and what has not - instead of waiting for the one annual statement. It was difficult enough to trawl through the NU (or should I say Aviva) website to find out what the MVR was on my policy. Mine was bought in 2000 so attracts a very high 20%. Hmmm

alared · 22 January 2009 at 7:39PM

Mine was also bought in 2000 and I will be closing it on the ten year anniversary when no MVR applies.(with or without re-distribution)

Certain people on this thread said that a MVR of 20% was unheard of (post #102) so thanks for that info Geoffo M

Geoffo_M · 22 January 2009 at 11:21PM

alared wrote: »

Mine was also bought in 2000 and I will be closing it on the ten year anniversary when no MVR applies.(with or without re-distribution)

Me too - unless there is a remarkable reduction in the MVR by 2010, unlikely I know

Alared - I've put the pdf link below. Scroll down to page 7. 2000 was one of the worst years, though we would have been worse off if we had bought between 1991 and 1993 (21%-22%)

http://adviser.norwichunion.com/product-literature/files/pr/press_release.pdf

Norwich Union - Reattribution

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