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Update on Norwich Union with-profits reattribution and fund transfer proposals
13 December, 2007
Norwich Union is continuing to pursue the possibility of a reattribution of the inherited estate of two of its with-profits funds; CGNU Life and Commercial Union Life Assurance Company (CULAC).
The proposals also include a fund transfer, which would transfer all the policies of Commercial Union Life Assurance Company (CULAC), CGNU Life and Norwich Union Life (RBS) Limited to one existing company – Norwich Union Life and Pensions Limited (NULAP).
Norwich Union has now confirmed with the Policyholder Advocate which policyholders are eligible to take part in the proposed reattribution.
Mark Hodges, chief executive Norwich Union Life, wrote to eligible policyholders in December to confirm their eligibility, provide additional information on the proposals for a reattribution and fund transfer, and provide a further update on progress made in the negotiations.
Full details are available on our dedicated website www.norwichunion.co.uk/fundtransfer.
The Policyholder Advocate’s role is to represent policyholders’ interests in the proposed reattribution (view press release). To find out more please visit her website www.policyholderadvocate.org.
What progress has there been so far?
The Policyholder Advocate has spent the early part of 2007 consulting with policyholders and financial advisers and is currently negotiating a deal with Norwich Union. Eligibility criteria for the proposed reattribution have now been confirmed.
Given the complexity of the transaction, the original timetable has been extended to allow enough time to get everything right. The new timetable may still change, but Norwich Union now expects it to be as follows:
| What happens | When |
|---|---|
| Eligible policyholders and pension scheme trustees will be informed of any offer and invited to accept or not. | Spring 2008 |
| Payments made to eligible policyholders who accept the reattribution offer. CGNU Life and CULAC with-profits policies transfer to NULAP. | Summer 2008 |
Any reattribution offer will only take place if there is agreement on a fair outcome for policyholders and shareholders.
Policyholders are reminded that they are not required to take any action at this point in time.
Further information, including a full explanation of terms and questions & answers is available on the Norwich Union website and the Policyholder Advocate website. A dedicated contact centre is also available to answer questions on 0800 051 1300.
An earlier interview with Mark Hodges about the reattribution is also available to view.
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