Aviva confirms £470m fund payout

1st Oct 2009 07:44

Insurer Aviva confirmed today it has completed the reattribution of the 'inherited estate' in its CGNU and CULAC with-profit funds worth £470m to policyholders.Customers will automatically start receiving their payments from early November with most receiving them by the end of the year. The company said 90% of payments will be between £214 and £1,230.A little over 87% of eligible policyholders voted during the election process, with 805,000, or 96% of them, choosing to accept the offer in return for giving up any claim to the surplus cash in the funds. A small group of policyholders had opposed the plan, but a High Court judge threw out the challenge earlier this month.The objectors complained that the payouts are just half the amount that would've been paid before the financial crisis. Consumer group Which? called it 'derisory'. In a separate statement, Aviva said it has completed the sale of its Australian life and pensions business and wealth management platform, Aviva Australia Holdings, to National Australia Bank.The deal, first announced in June, will bring in A$925m (£452m).'The sale supports Aviva's strategy of focusing on the key growth markets in Asia where leading positions can be achieved,' the UK-listed firm said.'The transaction provides greater financial flexibility, allowing Aviva to redeploy capital to other parts of its business to deliver better returns to shareholders.'