19 June 2008
Prudential was slammed by an influential committee of MPs for
using £1.6bn of policyholders' funds to pay compensation
costs arising from pensions mis-selling claims.
Committee chairman John McFall MP believes insurers should not
use the surplus cash in with-profits funds (the so-called inherited
estate) to meet mis-selling costs, pay shareholders' tax or
subsidise new business.
Policyholders believe any surplus should be returned to them via
a special dividend.
