More than 40% of policyholders have submitted their vote on Aviva's reattribution offer

Article date: 8 July 2009

Over 40% of eligible policyholders have now voted on whether to accept Aviva’s cash reattribution offer. All other customers must now decide whether to accept the offer and should return their completed voting forms to Aviva – no later than 21 August 2009. If policyholders want to receive the cash payment they must vote "YES" – if they do not vote at all, Aviva will have to assume they do not wish to receive a payment.

Aviva has posted reattribution voting packs to around one million eligible policyholders*, including 35,000 sent to customers in 130 countries around the world.  The packs have been sent to policyholders in countries as far flung as the Philippines, Pakistan and Yemen. 

Aviva’s call centres have taken over fifty thousand calls from customers and the company’s website has experienced high levels of consumer traffic - evidence that customers are considering their options very seriously and will make an informed choice.      

Any policyholder who believes they may be eligible for the reattribution but who has not yet received their pack should call 0800 051 1566 as soon as possible. The line is open from 8am-8pm Monday – Friday and 8.30am – 5pm on Saturday.

The voting pack contains information from Aviva and the policyholder advocate – Clare Spottiswoode - to help policyholders make their choice. It is an individual choice that each policyholder must make for each eligible policy they own; payments are not subject to a majority vote. 

Gary Price, reattribution director, Aviva, said: “We are delighted with the response we have received from policyholders this early in the process and we would encourage all other customers to vote as soon as possible.” 

Clare Spottiswoode, the policyholder advocate, who represents the interests of policyholders has said: “The offer is good news for policyholders after the turmoil in the financial markets that affected the plan announced last year.  This offer is also good for the great majority of policyholders under the FSA’s current rules.

“The Aviva proposal shows that together we have found an imaginative way of keeping the reattribution in place which includes the opportunity for policyholders to benefit from any increase in the estates.  Policyholders who decide not to accept the offer and keep their rights to future special distributions are also protected.”

Aviva’s flexible reattribution offer is linked to the value of the inherited estates which will be calculated over the summer. If the reattribution goes ahead, the incentive payment will not be less than the amount shown on each customer’s offer letter; but it could be more. The minimum policyholder incentive payment is £200 but the deal has been structured so that any increases in the value of the surplus funds by the reattribution date in October will be reflected in the payment.**

Key dates in the reattribution process

The following table outlines the key dates within the election process:



Policyholders receive mailing packs


From 1 June 2009

Deadline for policyholder vote


21 August 2009

High Court Hearing

14 September 2009


Policyholders receive their payments

From November 2009 onwards



Media enquiries:
Isabelle Handley-Allen, press office, Aviva
01904 453378 / 07800 695661

Louise Soulsby, press office, Aviva
01904 452617 / 07800 699526

Astrid Josephson or Edward Simpkins, Finsbury
0207 2513801

Notes to editors:

Further details can be found at

*Policyholders in two of Aviva’s with profits funds (CGNU Life & CULAC)

**Based on an inherited estate of £1.2 billion, the lowest figure at which the reattribution will proceed. The value of the inherited estate was £1.4 billion at 31 March 2009.

  • Policy holders have an entirely free choice whether or not to accept our offer but the incentive payment will only be available if they do. Whatever choice customers make, the main terms of their policy, the premiums they pay, and the guaranteed policy benefits will not be affected.
  • The "inherited estate" is part of a with profits fund. It is the amount over and above that which is required to meet realistic liabilities and which the insurance company retains to ensure it can meet its promises to customers; provide investment flexibility; and provide the initial capital to support new business. The inherited estate has been built up over many years and is an asset of the company.
  • Policyholders in the CGNU and CULAC with profits funds are able to choose whether to receive a payment now in return for giving up their right to receive uncertain future distributions from the funds' inherited estates. The reattribution remains subject to further court and regulatory approvals and the ratification of the deal by the Aviva board before the High Court hearing.
  • If the High Court approves the reattribution the Aviva board will, as provided in the Scheme, finally review the position immediately prior to the effective date to ensure that there has been no material change which would adversely affect the Aviva Group or implementation of the Scheme.
  • Aviva is the world's fifth largest* insurance group, serving 50 million customers across Europe, North America and Asia Pacific.
  • Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £51.4 billion and funds under management of £381 billion at 31 December 2008.
  • Aviva is the largest insurance services provider in the UK and one of the leading providers of life and pension products in Europe.
  • The Aviva media centre at includes images, company and product information and a news release archive.

*based on gross worldwide premiums at 31 December 2007

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