The FSA confirmed that Aviva’s £1bn offer is fair in terms of the payment being received by the policyholder, relative to the return being made to the shareholder, and the treatment of policyholders who wish to vote no.
This is a preliminary assessment based on current market conditions, and the FSA will offer a final assessment when the matter reaches the High Court, based on the offer and the market conditions at that time.
The combination of the firm’s offer and the special distribution means that an equivalent of around 70% of the value of the inherited estate would be released to policyholders, if all policyholders voted to accept their payout.
