Making Your Choice

Why the estate is not shared 90:10 in a reattribution

These notes explain why the offer is beneficial for the great majority of policyholders as well as shareholders, enabling everyone to be better off.

They also explain why the offer is not 90 per cent of the estate. These illustrations show how the value of the estate is expected to be shared between policyholders and shareholders. The first three show the position without a reattribution. Each illustration builds on the previous one to explain the concept. The final two illustrations show the effect that a reattribution has on the division of the estate. The proportions are purely illustrative.

FSA concessions to shareholders - How shareholders gain more than their 10%

Impact of FSA concessions on estate

The estate is shared with future policyholders - policyholders’ 90 per cent is shared between current and future policyholders.

What happens in a reattribution - the company offers cash to buy out policyholders’ rights to future special distributions and takes full control of the estate. The estate remains to support guaranteed benefits.

How the estate is divided in a reattribution - money that would have gone to future policyholders is shared between current policyholders and shareholders, and to pay costs.