Norwich Union flotation
When did Norwich Union float?
Norwich Union floated on 16 June 1997
When did it announce its intention to float?
The company had announced its flotation plans on 2 October 1996, following a strategic review. The flotation of Norwich Union was the first demutualisation and flotation of a UK life insurer.
Who qualified for free shares?
There were 2.9 million qualifying members. These were most holders of life, pension and annuity policies. Permanent health and general insurance policyholders were not members.
How many shares did they get?
The average number of shares received by each qualifying member was 300. The exact number was dependent on the type of policy held:
- With-profit members received a variable allocation of free shares (dependent on the size of the with-profit investment and the period for which the policy had been held), subject to a minimum of 300.
- Non-profit members received a fixed allocation of 150 shares.
Did Norwich Union raise any extra capital at flotation?
Yes, Norwich Union raised £2.4 billion of extra capital in a member and institutional offer that was heavily over-subscribed (members’ offer 3.9 times over-subscribed and institutional offer over 10 times covered).
Were members able to purchase extra shares at a discount?
Yes, there was a members’ offer where shares could be purchased at a 25% discount. This offer was 3.9 times over-subscribed.
What happened to Norwich Union shares when the company merged with CGU?
Norwich Union and CGU merged on 30 May 2000 to form CGNU, now re-named Aviva plc. At the time of the merger each Norwich Union share was swapped for Aviva shares in the following proportion: 100 NU shares = 48 Aviva shares.
What was the value of shares on flotation?
300 Norwich Union shares were valued at £870 on the day of the flotation. Today they represent the equivalent of 144 Aviva shares.
What happened to members who failed to claim their shares?
As part of the Norwich Union/CGU merger scheme the entitlement to shares lapsed and was replaced by a right to an equivalent cash sum.
January 2004