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Questions and answers

These were prepared to assist policyholder in coming to their decision about the Aviva offer to buy out policyholders interest in the inherited estates of CGNU and CULAC. The reattribution was approved in the High Court on 19 September 2009 (see ‘News & Articles')

124) What are the uses of the inherited estates?

In particular Clare had concerns that the company can use the estates to write new business on a subsidised basis. The shareholders of the company benefit from this. Any money diverted from the estates reduces the chances of there being an excess surplus which could be available for special distributions