No Windfall Payments From The Pru

Published: 7/7/2010

The Prudential has advised with profits policyholders that there will not be a windfall payment to them of surplus funds after considering the option fully.

There was a consideration of the option, working out at around GBP1,000 per person which would have been in exchange for these customers giving up the right to any future pay outs from the assets the Prudential inherited from other companies. However it has been decided that the inherited funds will be better employed withn the organisation right now, especially in the current economic climate where financial institutions are looking to maintain as much financial fluidity as they can.

Customers of the Prudential will surely not feel too aggrieved by the decision since it looks like the sensible and considered option to most commentators. It is better to have a strong business than no business at all.