Norwich Union Life believe that if Aviva's 'shake-up' of orphan assets is successful, other providers could follow the provider's lead, after recent confirmation that there were to be discussions over the break up of £3.3 billion of Aviva's orphan estate.
If the company does share out its' orphan assets, which are made up of excess profits from investments and unclaimed policyholder cash, it will be the first time a leading insurer has done this since Axa divided up £1.7 billion in 2000.
Prudential, which has an estimated £6.3 billion in orphan assets, have said that they have no plans to 'reattribute its book' at present.
Our view
We believe this to be dangerous ground. Providers, bankers and even the Government are all casting their greedy eyes over 'other peoples' money. Orphan assets should be used to benefit the community but only the interest and not the capital - this should be preserved until an equitable solution is found.