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Inherited estate

V

Viki2010

Member
The core reading states that the "reattribution" is a specific mechanism for propriatary companies. What happens for mutuals? The inherited estate belongs to the policyholders but is not allocated to wp business. It acts as surplus. So wouldnt a mutual have to go through reattribution?
 
Viki2010 said:
The core reading states that the "reattribution" is a specific mechanism for propriatary companies. What happens for mutuals? The inherited estate belongs to the policyholders but is not allocated to wp business. It acts as surplus. So wouldnt a mutual have to go through reattribution?
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A reattribution is the process of reallocating the estate between policyholders and shareholders. So instead of splitting the estate 90/10, it may be reattributed as 70/30. So it doesn't apply to mutuals which are 100/0.

Instead a mutual may decide to distribute the estate. For example it could reduce the estate by paying out on average more than asset share.

Best wishes

Mark
 
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