Norwich Union £2.1m bonus to policyholders

The bonus comes as the result of the strength of two with profits funds and a change to the investment strategy for supporting policy guarantees.

Aviva has said that the strength of the funds allowed it to free up a significant part of the inherited estate for payment to policyholders.

Avivia said that the bonus would be "used to enhance policy values by around 10% in total in three installments (the qualifying dates being 1 January 2008, 2009 and 2010)".

Mark Hodges, Chief Executive of Norwich Union Life, said: "As a result of the funds' financial strength, performance, and the changes made to our investment strategy we can release around half of the inherited estate - 90% to our policyholders and 10% to shareholders."