Norwich Union - Reattribution

Baldur

No figures mentioned, but see http://www.norwichunion.com/specialbonus/

Update: November 2008 I’m pleased to confirm that the process for adding the 2008 special bonus to eligible policies began on 21st November. The addition of the first special bonus is estimated to be complete for all eligible bond, pension and endowment policies by the end of December 2008.
The addition of the 2008 special bonus represents a distribution from the inherited estates of the CGNU Life and CULAC With–Profit Funds of an estimated £700m. I hope this will come as welcome news for our eligible customers at the end of a difficult year, in financial terms.

sandraroffey

thanks for that but a bit lost here!! been a long day already.

it looks as though some of the bonus is being added to the policies with a cash payout sometime next year???

Baldur

sandraroffey wrote: »

it looks as though some of the bonus is being added to the policies with a cash payout sometime next year???

You should have received letters informing you of this earlier this year, if you hold a qualifying policy - see also https://www.life.norwich-union.com/fundtransfer/announce/

dunstonh

Dont mix up the special bonus (3 years payable from dec 08) with the reattribution, They are two different things.

The first of the three special bonus payments is being paid this month. Some plans have already had them added but its been done over the month so it may not be on there yet. I have checked a few and they have had theirs. The amount was 3.6% of the value back in January 08.

The reattribution itself has no new news but is under potential threat of being postponed or reduced/removed due to market conditions. However, no decision has been made yet.

Baldur

dunstonh wrote: »

Dont mix up the special bonus (3 years payable from dec 08) with the reattribution, They are two different things.

Only because Aviva/NU have chosen to adopt the special bonus route for a portion of the inherited estates, rather than the original plan to pay the full agreed amount through the reattribution process, surely?

dunstonh

Baldur wrote: »

Only because Aviva/NU have chosen to adopt the special bonus route for a portion of the inherited estates, rather than the original plan to pay the full agreed amount through the reattribution process, surely?

The special bonus was agreed well before the cash payout was. Its not a change of plan.

alared

I see in the newspapers that NU are going to waste NINE MILLION pounds on an advertising campaign to make the public aware that it`s going to change it`s name from their familiar,well known,respected name of Norwich Union to Aviva,which sounds a bit like a bus company to me.

I notice they didn`t ask any policy holders views on this pointless name changing exercise.

While they are perfectly willing to squander £9 million on a whim,they seem reluctant to cough up the orphan fund payouts that they are still dragging their heels over.

I`ve said this before,don`t be at all surprised if they pull the plug on the payments,using any excuse they can dream up,like the old favourite "market conditions".

If they really wanted to make a genuine payment to policy holders, a one off lump sum added to the policy would have been the simple straight forward way to achieve this,instead of p*ssy-footing around for the last three years and splitting the payments (if they actually happen) over the next three years.

PS: please don`t tell me the name change is for "world-wide branding" recognition :mad:

dunstonh

I notice they didn`t ask any policy holders views on this pointless name changing exercise.

They dont need to. They are not a mutual and its upto the board and the shareholders.

While they are perfectly willing to squander £9 million on a whim,they seem reluctant to cough up the orphan fund payouts that they are still dragging their heels over.

at the moment, they are not dragging their heels. However, it would be common sense if they do decide to put it back.

I`ve said this before,don`t be at all surprised if they pull the plug on the payments,using any excuse they can dream up,like the old favourite "market conditions".

Credit rating agencies are going to downgrade them if they release these funds. That has consequences. So, its not just a case of using excuses.

If they really wanted to make a genuine payment to policy holders, a one off lump sum added to the policy would have been the simple straight forward way to achieve this,instead of p*ssy-footing around for the last three years and splitting the payments (if they actually happen) over the next three years.

Which as said higher up is something different to the re-attribution.

PS: please don`t tell me the name change is for "world-wide branding" recognition

It is. In this case though AVIVA is a UK brand as well unlike others which have come from abroad. Although I dont like the name change either.

alared

Do you work for NU or Aviva?

Do you agree that they should waste £9 million on a name change?

Don`t you think they should just get on with the pay outs?

Market conditions may stop the pay outs but market conditions won`t stop the squandering of £9 million on an advertising campaign!

earlgrey_3

alared wrote: »

Do you work for NU or Aviva?

I'd assume yes in the sense that they are the ones who pay him but not directly.

But more generally, a non mutual company is there to maximise profits for its shareholders: not its customers. (The more cynical shareholders might take the view that like many companies it's in practice run for the benefit of the board.)