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Norwich Union Reattribution

10 replies

goblinvalley · 28/05/2008 16:28

Anyone heard anything? Last time i heard anything was when the report was submitted back to Norwich Union from the Policyholder Advocate.

I would really love to know what is actually going on

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Lubyloo · 28/05/2008 22:40

I had an email today but it was just their newsletter and explained terminology. It seems to be dragging out doesn't it. We are thinking of selling on our endowment but want to wait and see what we get from this first.

hopefully · 29/05/2008 11:38

The whole thing had gone to a treasury committee, last I heard, as there's so much controversy surrounding it. Bump this tomorrow morning and I'll ask my boss, who is a fount of knowledge on all matters inherited estate (she edits a financial magazine)

goblinvalley · 30/05/2008 15:03

bump

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hopefully · 30/05/2008 15:24

Have investigated fully! Well, fully-ifh.

Norwich Union, folowing the treasury select committee hearing, have made another offer, distributing about 40% of the inherited estate (more than Axa, who recently did a similar thing). Claire Spottiswood, the policyholder advocate, is currently deciding whether this offer is reasonable (the 40% will be divided between shareholders and policyholders, she is deciding whether the split is fair, I believe, but may also be deciding whether the 40% offer is adequate).

She will then go back to NU with her decision and one of two things will happen:
a) she agrees that NU's offer is adequate, policyholders and shareholders receive their payout, job done, case closed.
b) she says that the offer is not reasonable and NU can then either make another offer (possible, but becomming less likely as the case drags on), or just not distribute any of the inherited estate, but keep it in the company, possibly resulting in a higher maturity value when the policies mature.

NB, NU is under no legal obligation to distribute anything - the inherited estate is money provided by shareholders to run the company, not money made from policyholders' funds. it is something of a goodwill gesture, although obviously it looks bad if NU decides not to distribute anything. If NU decides not to distribute, it may result in a higher payout at maturity, but nothing is guaranteed.

hopefully · 30/05/2008 15:24

ifh? fully-ish.

tissy · 30/05/2008 15:26

haven't a clue what you're on about, but does this mean that NU shareholdes are about to get a payout? [hopeful emoticon]

Piffle · 30/05/2008 15:34

oh yes dps pension is with Norwich onion family joke...
was wondering what was happening. Did the last letter not say sorted by summer 08?
wonder what the amounts will be... Will they be cash payouts or be allocated to the pension?

hopefully · 30/05/2008 16:50

Tissy, the result could well be a payout for NU shareholders, depending on how the policyholder advocate recommends, and whether NU take her advice (again, they're not legally obliged to). Chances are good though, I'd say!

Piffle I think they probably class 'sorted' as 'telling you what we're going to do', and 'summer 08' as 'by September 08', so there's a good chance that we'll know what's happening by then, but that's not to say anyone will have received any money by then.

goblinvalley · 30/05/2008 20:24

Hopefully, thanks for your response. It is just taking sooooo long. I know that they are not obliged to pay out, and am a bit surprised really as it is not 'our' money - but they can't tell me i'm eligible and then go silent. I shall hunt them down

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hopefully · 02/06/2008 12:35

It is appallingly tedious. I tend to get updates on it with work, so if I hear anything I'll post it on here.

Would be so much easier if they were obliged to go through the whole policyholder advocate thing before writing to everyone and telling them that they MIGHT get some money.

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