FTAdviser.com

AIG Life pays £100m to Protected Recovery fund investors

Story by: Sharon Flaherty
Magazine: FTAdviser
Published Monday , May 11, 2009

AIG Life is to pay out over £100m to investors in its Protected Recovery fund, representing around 5 per cent of the fund’s value.

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In December 2008, 95 per cent of its Enhanced fund policyholders decided to transfer their investment into the Protected Recovery fund, after the Enhanced fund was suspended in September.

In its latest update to investors, AIG Life said despite the market conditions it was able to make the distribution payment of £100m on 6 June this year.

The distribution payout will be 4p for each Protected Recovery fund unit held, representing just over 5 per cent of the total fund value.

AIG Life said it hoped policyholders were pleased with the acceleration of the guarantees given the financial climate, but added: "Each distribution can only be finalised in the context of up to date asset prices, interest rates, market sentiment and policyholder needs."