This is policyholder advocate's original website which was launched on 21 November 2006.

This site has been regularly update during the reattribution negotiations but was closed to new information on 31 May 2009. We have kept it open as reference site.

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February 2009 Update

Dear Policyholder

Since our update at the end of September last year we have been working on all the documents needed to go to you and to the courts to explain the nature of the deal announced at the end of July.

The financial turmoil in world markets, and in particular events since October, have affected the inherited estates and they have reduced significantly in value. The audited figures will not be available until March but we do know that the company does not believe that the fixed offer of £1 billion if everyone accepted their offer works in today's market conditions.

The company has therefore asked us to open discussion on a new way of devising an offer that can vary with the size of the estate. That is what is currently being worked on and today Clare has issued a statement commenting on matters. This is below. The Norwich Union statement can be found by following this link http://www.norwichunion.com/fundtransfer

This is complicated work but we believe that it can be completed relatively quickly.

Comment from Clare Spottiswoode CBE, policyholder advocate

'The financial turmoil we have seen since we announced a reattribution deal in July 2008 has been unprecedented. In the face of a significant reduction in the value of the estates, the fixed price offer no longer works for the company in today's market conditions.

'Importantly, however, the company has opened discussions with us about how to keep the prospect of a reattribution offer alive. We are considering how we might be able to restructure the offer to move in line with the size of the estate at a point close to the time payments could be made. I am confident that we will succeed.

'I believe that it is very positive that, even in these extraordinary times, the reattribution remains on the agenda. Our intention in these discussions is to keep the other principal parts of the deal in place, namely that there will be a minimum payment, policyholders will be able to make their own decision about what to do, and if they decide not to accept they will be in broadly the same position as they are now against a wide range of economic circumstances.'

The next stages will be to complete the technical work and to take views from others involved such as the independent expert and the Financial Services Authority. It does mean, however, that, at the earliest, it is likely that any High Court hearing will be in the autumn and any payments in the early winter.

Once firm decisions are taken we will write again.

Yours faithfully

Jonathan Haslam
director of communications

 

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