Web extra: Aviva payout

The payouts to with profits policyholders were to average £1,000 each

This week the insurance company Aviva - formerly Norwich Union - said it may scrap a payout to more than a million customers.

The move effects policy holders of two with profits funds.

A payout from what is known as the "inherited estate" was nominally agreed with policyholders in July.

But the company now says poor market conditions means it needs to hang on more of the cash itself.

Clare Spottiswoode, policyholder advocate, tells us more.

Further information/related stories:

Aviva cancels £1bn policy payout

Offer for Aviva's policyholders

Payout for Aviva's policyholders

Is Aviva payout a 'stroke of genius'?

External internet links:

Norwich Union

Norwich Union: About the proposed fund transfer and reorganisation - or reattribution - of some of Norwich Union's with-profits funds

Norwich Union press release: Norwich Union announces £2.3*^ billion special bonus and puts third, improved reattribution offer to Policyholder Advocate

Aviva

Office of the Policyholder Advocate

Office of the Policyholder Advocate: February 2009 Update

Financial Services Authority

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