The Wall Street Journal-20080206-Aviva PLC- Norwich Division to Pay Special Bonus to Holders

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Aviva PLC: Norwich Division to Pay Special Bonus to Holders

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Norwich Union Life, a division of United Kingdom insurer Aviva PLC, is paying a GBP 2.3 billion ($4.5 billion) special bonus to policyholders and shareholders. About 1.1 million policyholders will receive a total of GBP 2.1 billion, while shareholders will get GBP 230 million. "The bonus will enhance policy values by around 10% in three equal installments, the qualifying dates being Jan. 1, 2008, 2009 and 2010," the firm said. The payment is coming out of the inherited estate, or excess capital that has been built up over decades in the insurer's two with-profits funds. The bonus will reduce the inherited estate by about half.