01 May 2008
Prudential has used £1.6bn of the surplus in its life fund
to pay the cost of compensating policyholders who had been mis-sold
pensions, it told a group of MPs yesterday.
The revelation comes as windfalls for about 4m Prudential
with-profit policyholders hang in the balance with the life assurer
coming to the final stage in its deliberations over whether to
release the £8.7bn surplus in its £74bn with profit
life fund.
Prudential has said it will make a decision by the end of June
on whether to go ahead with a restructuring of the surplus, known
as reattribution.
