Policyholders Vote for Payout Share Print E-mail

TEP – 11 September 2009

Eight out of 10 policyholders at insurance giant Aviva have so far voted in favour of accepting a share of a £500 million payout, it has been announced.

The group said more than 85% of its one million eligible policyholders had voted on its reattribution offer to date, with 96% of these voting in favour of it.

The insurer recently extended the deadline by which policyholders must have returned their forms to it by one month to September 21 due to the high level of response it has had.

It said it would be asking the High Court to approve the reattribution on Monday.

The group hopes to complete the reattribution process by October 1, with the vast majority of policyholders receiving their payments by the end of this year.

Under the deal, policyholders are being offered a cash windfall in exchange for giving up their rights to any future redistribution of the surplus assets that have built up in the group's with-profits funds, known as the inherited estate.

But each customer has to make their own decision on the issue, with those who opt to decline the offer retaining their rights to any future redistribution.

People who fail to vote by the deadline will be classed as voting no, meaning they will lose the chance to benefit from the reattribution.

The payout will see 90% of eligible policyholders receive between £200 and £1,150, with the remaining 10% getting more.

Mark Hodges, chief executive of Aviva UK Life, said: "I encourage customers to make their vote count and record either a yes or a no to the offer."

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