Negotiations between Norwich Union and Aviva may be on hold
The owner of Norwich Union, Aviva, is thought to be against the free £4 billion of surplus assets held in Norwich Union’s with profits business.
Rumours about the planned reattribution have been extensive since policyholders did not receive an update on developments. An update should be provided every 6 months according to Financial Services Authority guidelines.
Discussions with Aviva commenced in June and while Aviva’s board will be eager to avoid public embarrassment, there could still be a delay in the proceedings.
If the reattribution does not go ahead, 1,100,000 Norwich Union policy holders would be dissatisfied after anticipating windfalls of around £1,000. In addition, an impact would be felt in London after analysts speculated that Aviva would invest part of the surplus in new projects.
A former utilities regulator has been appointed to act on behalf of Norwich Union policyholders.