Endowment Shortfalls and Orphan Assets

MakingEndsMeetToo

Like many other members posting here I'm facing a shortfall in my endowment policy, linked to my mortgage. Sadly, I have been unable to locate any information to support a misselling claim, and in any event "my time has expired" according to the industry deadlines.

However, I recall that many (all?) large insurance companies maintain(ed) a fund of so-called "Orphan Assets", originally as a hedge against bad times but now seen as a shareholders' and executive bonus payment. My policy is with AXA who led the stampede to "free up" these monies which I think would have been more correctly used to compensate policyholders, but sadly the law courts didn't agree.

I'd be interested to hear other people's views on this topic - maybe it's something worth pursuing.

dunstonh

As it when through the courts and the courts allowed it, there is little you can do about it now.

It is pretty disgraceful that it happened. Almost laughable in some cases. For example, AMP bought Pearl for just over £1 billion and were then able to free up £1billion of orphan assets. In effect it bought Pearl with Pearl's own money. Or perhaps better put as bought Pearl with policyholders money. If they hadnt been able to use those assets, Pearl would not be in the mess it is in today.

MakingEndsMeetToo

When AXA offered me a couple of hundred pounds several year's ago to sell out my rights to claim against the Orphan Assets, I declined. They achieved a majority vote and went ahead anyway, but I'm now wondering if my residual "right to claim" is worth anything.