Norwich Union with profits bondholders, who invested between 1998 and 2001, with a market value adjustment (MRV) free anniversary, will be able to carry it forward.
Around half of the company's half a million profit bond holders have an MRV-free anniversary, and existing policyholders, who hold a Norwich Union with-profit policy, but want to remain with the policy after the MRV - free anniversary will be able to carry it forward to a later date.
The company will be writing to policyholders who are nearing their anniversary to let them know that they can redeem the policy without the MRV being applied. If they do not want to surrender their policies, they can now carry the MRV offer forward and set it against any future MRV's.
Our view
This is great news for investors, and it will cost NU alot. In fairness to NU, it is admirable that they will write to people to say that they have a penlty free exit opportunity! Well done NU.
Search the news archive for more on With profits or Bonds.
Search the news archive for more on Norwich Union.