Capital management
UK Life reattribution
In May 2009, following discussions with the Policyholder Advocate, we announced a new offer to almost one million eligible policyholders. The new offer is more flexible, with future changes in the value of the estate being reflected in the payouts customers elect to receive. Final payments will be based on the average valuation of the estate from June to August, and we expect to start making payments in November, following High Court approval. The estimated estate value at the end of June was £1.2 billion. If policyholders choose not to accept the payment, they will continue to receive normal bonuses and it will have no impact on the security or performance of their investments.
To date approximately 70 percent of policyholders have responded to the offer with 96 percent accepting. Based on this response we are confident that in the remaining 6-8 weeks before the court process begins we will achieve our targeted 80 percent acceptance.
