£2.1bn bonus for Norwich Union customers

MORE than one million Norwich Union with-profits policyholders are set to share a £2.1 billion special bonus, the group said today.

MORE than one million Norwich Union with-profits policyholders are set to share a £2.1 billion special bonus, the group said today.

The insurer said it was distributing £2.3 billion of its so-called inherited estate, with 90 per cent going to its with-profits customers and 10pc being returned to shareholders.

Under the move, 1.1 million qualifying policyholders in the group's CGNU Life and CULAC with-profits funds will receive a payout worth around 10pc of their policy value.

The money will be paid in three instalments, with the first one made this year, followed by further payouts in 2009 and 2010.

Shareholders will receive £230 million of additional capital, which will also be paid out in three goes.