Norwich Union Starts To Hand Back Orphan Assets
The issue of so called insurance orphan assets has long been a major problem for the insurance industry, who owns them and what can legal be done with them. In a deal which has taken two years to negotiate, CGNU has announced that more than one million policyholders will receive compensation of between £400 and 1,000 to forego any right to future bonuses and payments from the orphan assets.
The total fund available for distribution is in excess of £1 billion with 70% going to policyholders and the remaining 30% going to shareholders whether by some special dividend or a cash injection into the group. However, now that one of the main UK insurers has broken ranks and arranged a distribution, with the blessing of the regulator, it seems only a matter of time before the other insurers follow suit.
This does seem the best way to use to funds available with shareholders receiving the benefits via the group and policyholders in line for a useful payout at a time when money is tight across the UK. The deal has been one long struggle for CGNU but they have somehow found an agreement which has been accepted by all parties.
Share this..
Related stories
Are we now paying the price for tax rises over the last decade?
While there is no doubt that the ongoing recession was brought about by the collapse in the US banking system, which subsequently spread to around Europe and the rest of the world, is a recovery in the UK economy being held back by the ever-increasing number of taxes on everyday life?
The last decade in particular has seen a massive number of stealth tax introduced to the UK as well...
UK home holidaymakers 'not taking out insurance'
Many Britons are not taking out travel insurance for their holidays within the UK - despite the risk of being left out of pocket.New analysis from Sainsbury's Finance shows the potential scale of the problem, by finding that 15 per cent of British adults have never gone abroad and that around 50 million domestic holidays are taken each year at a total cost of £10.9 billion.The firm suggested that...
Read MoreIs David Cameron right to attack public sector pensions?
Over the last couple of days we have seen some momentous decisions regarding public sector pensions which on the surface appear fairly innocuous but will have major consequences for those working in the public sector. Some doomsday scenarios suggest that by changing the inflation index from the retail price index to the consumer price index some public sector workers could see their pension paymen...
Read MoreBank of England agrees to maintain quantitative easing programme
Bank of England minutes from the September meeting have been released today showing that the vast majority of members voted in favour of maintaining the quantitative easing programme at £175 billion with the potential to increase this in due course if required. This move has been taken well by the currency markets where sterling has moved higher in early trading but there is still some concern ab...
Read MoreIs your garden insured for the increased risk of theft?
As crazy as it may sound there has been a significant increase in garden thefts since the recession hit home and many homeowners are finding they are severely under-insured. We are talking about thieves breaking into sheds and stealing expensive equipment as well as thieves stealing expensive shrubs, plants and even freshly laid lawns. So are you fully covered?
The vast majority of...