THOUSANDS of Irish policy holders look set to gain from the floation of Norwich Union, Britmu's second biggest mutual insurance company, on the stockmarket. Reports in London said that the group would formally announce in next two weeks it would float the London Stock Exchange summer.
The reports said the company give bonuses averaging £700 three million after the £400 billion sterling flotation.
The conversion, likely to be in June, would have to be approved by a vote at an extraordinary meeting of policyholders. The reports said that Norwich Union was looking for a big enough venue to accommodate the flotation.
The company has 183,000 life policyholders in Ireland, although it is not clear yet how many would benefit from the flotation. Only a proportion of policyholders would have with profits policies which the reports suggest would be the ones to benefit. The bonuses are likely to be paid by way of shares. However, it would not be until the details are announced that it would become clear who will benefit and by how much. Holders of general insurance policies covering areas like motor and home insurance would not benefit from bonuses from the flotation.
Norwich Union has already said that it was examining the possibility of flotation and believed that this course could provide significant benefits for its members.
The flotation would allow Norwich Union to rationalise its structure and to raise new capital on the market to fund acquisitions and development. One concern for the Norwich Union would be that some members could lose out if their policies mature shortly before the flotation.
