Prudential Reattribution of Assets

On the 15th March 2007 Prudential announced that it was considering the possible reattribution of assets held in the Prudential With Profits Fund

What is known?

Reattribution could be a lengthy process of consultation and implementation. At present there are no confirmed timescales. An independent policyholder advocate (IPA) will be appointed to act in the interests of the policyholders.

No actual decision has been made to pursue reattribution yet. If the Prudential do decide to pursue this course of action the IPA will be appointed later this year.

Prudential have stated that it will only follow this course of action if it is in the interests of Prudential Shareholders and policyholders.
Prudential have confirmed that to be qualify you must have an eligible policy as at close of business on the 14th March 2007 and for the policy to be still held at the effective date of reattribution.

The timing and amount of any reattribution has not been confirmed and will not be clarified for some time.

Any reattribution could be in the form of a one off cash payment or participation in additional bonuses. Prudential have confirmed that even if the reattribution process is implemented there is no guarantee that policyholders would receive a distribution in the short term.

Any new policies taken out after this point will not participate in the reattribution.

As at the 31/12/05 the total size of the with profits fund was £61.4 million.

Prudential have confirmed that there closest estimate to the value of the inherited estate as at 15 March 2007 was £8.6 Billion.

For additional information on the reattribution process please contact Prudential on 0845 300 2641 or visit the Prudential policyholders website at Pru Reattribution .