Aviva offers Norwich Union customers an average of £1000 each

There is good news on the horizon for around one million Norwich Union customers, as the insurance giant Aviva, created from a merger of Norwich Union and CGU, is offering them a cash windfall of an average £1000. The news came after Aviva reported a rise of 12% in profits. The windfall will go to policyholders of Norwich Union life funds.

The payment that each customer receives will depend on the size of the policy as well as how long the policy has been held. Some customers will receive between £400 and £1000 whereas others may receive between £1000 and £3500.

An official from the insurance firm said: ‘This is a great offer. We believe that it represents good value for 99% of policyholders and almost all of the cash payments will be tax-free.’

This deal comes after two years of negotiations with regards to how to divide up the £5 billion worth of surplus funds from Aviva’s inherited estate. However, the firm has warned policyholder not to expect any further sizeable distributions over the next few years.