I understand AXA did a similar thing recently - does anyone have any experience of this? How did it all unfold and were the payouts met with approval??

Take a look at the "Explanation of terms" section (page 16) of the "Your Questions Answered" booklet sent out by Norwich Union December 2007. The term Excess Surplus concludes "and which it would be unfair to policyholders not to distribute" - then surely they have not been fair to us policyholders in the past, by not distributing this excess surplus. Certainly the Regular Bonuses declared over the past 5 or more years have been less than fair. Many thanks

What gets me is the Norwich Union say they are "planning to reorganise or reattribute PART of the money that has built up on the CGNU Life and CULAC with-profits funds. This money, known as the inherited estate, is above the expected amount needed to meet policyholder and other commitments." (excerpt taken from their December 2007 letter). Could it be the reason this lump of cash has "built up" because we have not been receiving appropriate bonuses over the past 4 years?? Seems to me they are hoping to buy us out of any future windfall pay outs. The words "smell" and "rat" come to mind? yours cynically