FSA provides preliminary view of Aviva's proposed reattribution offer
30th July 2008Following agreement between Aviva and the Policyholder Advocate, Clare Spottiswoode, the Financial Services Authority (FSA) has today given a preliminary assessment that Aviva's GBP1bn offer for the company's inherited estate is fair. The assessment relates both to the payment being received by the policyholder relative to the return being made to the shareholder and the treatment of policyholders who wish to vote no.
This is a preliminary assessment based on current market conditions. The FSA will offer a final assessment, when the matter reaches the High Court, based on the offer and the market conditions at that time.
The combination of the firm's offer and the special distribution means that an equivalent of around 70% of the value of the inherited estate would be released to policyholders, if all policyholders voted to accept their payout.
Policyholders eligible for the reattribution offer will receive a voting pack later in the year. This will set out the detail of the offer and explain the process in more detail. The Policyholder Advocate will also provide general advice at this time. Policyholders do not need to take any action at this time.
