AVIVA FINALIZES REATTRIBUTION DEAL

UK-based composite Aviva has completed the reattribution of the inherited estate of its CGNU and CULAC with-profits funds. The total value of the inherited estate has been calculated at £1.25bn ($2.0bn), based on an average from calculated estate values at the end of June, July and August this year. This is slightly higher than the £1.2bn minimum level on which basis the offer to shareholders was made. Aviva will pay out £470m from shareholder funds, with 805,000 customers receiving payments. Aviva noted that there was a 96% approval of Aviva's offer, on an 87% turnout. About 90% of payments will be between £214 and £1,230. Aviva said that about 70% of the value of the inherited estate would be paid to customers either through reattribution or special bonuses. Aviva said that shareholders, in return for the £470m paid out, would gain access to about £650m in additional capital over five years. The reattribution will generate a one-off profit of £80m on an IFRS basis, with ongoing annual earnings increased by about £45m. Aviva UK Life CEO Mark Hodges said that "our objective has always been to create a reattribution that was fair to both shareholders and policyholders, and that's exactly what we've achieved".