Aviva scraps payout to policyholders
Fri, 13 Feb 2009
Insurance giant Aviva has backtracked on a pledge to give around a million customers £1bn worth of orphan assets .

The life insurer announced plans last July to offer its Norwich Union with-profits policyholders windfall payments averaging £1,000 each for their share of inherited assets that either have not been claimed, or cannot be designated to a specific policyholder. However, due to sharp falls on the stock market, Aviva says the original offer is being withdrawn as it is no longer fair to shareholders.

Andrew Moss, group chief executive of Aviva, said: "The original offer did allow for normal market fluctuations, but not for changes of this magnitude. The bottom of the FTSE 100 range under which the payout was agreed was 5000 points, and that obviously hasn't happened. It is not certain that there will be a payment but we are working very hard to see if we can come up with a sensible offer."
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