Thursday 4th January 2007
Consumer magazine Which? has provided Norwich Union customers with investment advice to avoid losing out on up to £4 billion in with-profit funds.
According to Which?, Norwich Union may have up to £4 billion in "orphan assets", which do not belong to any one policy holder.
However, it warns that the companys shareholders may be allowed to buy out the assets with policy holders receiving little or none of the proceeds.
A spokesperson for Which? said: "What we believe is that up to something like four million people might be affected.
"We think that these orphan assets should be reattributed to policyholders and we think the split should be 90/10 policyholder/shareholder."
She added that Clare Spottiswoode, policy holder advocate at Norwich Union, is to decide on the final split.
Policy holders were encouraged to contact Ms Spottiswoode via the company website, as well as to attend one of the open meetings to be held to discuss the subject over the next two months.
Norwich Union says that with-profit investments provide a "smoothed" return via biannual bonus payments.
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