Making Your Choice

49) I have received a letter/heard something in the press, what is happening/why?

Aviva would like to reorganise some of its with-profits funds so that it can use more efficiently for shareholders some of the assets (that is, shares, property, government securities and cash, amongst other things) in these funds which form part of what is called the 'inherited estates'.

The Aviva plan would be achieved by using a process known as a 'reattribution'. This forms part of a wider plan to reorganise the Aviva life companies. A reattribution requires the agreement of policyholders. If a policyholder agrees to the reattribution plan, they will be asked to give up their right to any future 'distribution' or sharing out of the inherited estates. In return the policyholder will receive an incentive payment or, in some cases, an additional bonus allocated to their policy. The policyholder's investments would then be put into a different fund. That fund will be properly supported as the Financial Services Authority has rules to ensure that policyholders' funds are protected.

If a policyholder does not wish to accept the offer, their position is protected – their policy or policies will be left in a fund that has the appropriate resources to carry on as before.

Whether or not a policyholder accepts or rejects the offer, the terms of the policies themselves remain unaffected.