Having just received a letter from Norwich Union about reattribution vs. distribution I am lost as to what they are trying to do and why. I have a with profits (what a laugh) endowment policy that is performing poorly but now I get a letter saying Norwich Union have discovered some additional funds in the form of "inherited estate." But it appear they wish to use this to pay shareholders rather than policy holders with endowment deficits.
Is it cheaper to pay FSA fines and mis-sold endowment settlements than actual make up the losses using this money? Why pay shareholders rather than policyholders?
Why does their documentation only talk about the benefits of reattribution but makes no comment on the disadvantages of reattribution or benefits of distrubution? Hardly seems an imparital stance and advice if they are asking people to vote on the matter.
Any advice or comments welcome on this confusion issue.
Kevin