Dáil Éireann díospóireacht -
Thursday, 24 Oct 1996

Vol. 470 No. 6

Written Answers. - Norwich Union Flotation.

Brendan Kenneally

Ceist:

77 Mr. Kenneally asked the Minister for Enterprise and Employment if he has satisfied himself that the interests of policy holders are protected in relation to the proposed Stock Exchange flotation of Norwich Union, particularly those policy holders who have taken out a mortgage protection policy through the Trustee Savings Bank, who have been told that they will not qualify as shareholders and that the premiums they have been paying to Norwich Union will benefit the TSB which will become a shareholder; and if he will make a statement on the matter. [19628/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

I understand that the mortgage protection policies arranged through the Trustee Savings Bank have been issued by the Irish branch of Norwich Union Life Insurance Society. As a consequence of the flotation, the Irish branch business will transfer into a new company. The United Kingdom Department of Trade and Industry, who are the supervisory authorities for Norwich Union Life Insurance Society, will consult me in relation to the transfer.

If I am satisfied, on the basis of an examination including an actuarial examination of the scheme of transfer, that the reasonable expectations of policyholders as a whole in the Irish branch have been safeguarded, I will indicate as much to the UK authorities.

The UK High Court will, then, decide whether to sanction the transfer, based on actuarial reports, the views of supervisory authorities and observations, if any, from policyholders.

The issue of qualification as shareholders is a matter for the members of Norwich Union Life Insurance Society. I have no function in the matter. I understand that, broadly, membership is conferred by holding a life pension or annuity policy, in accordance with the Society's articles of association. However, I understand that individuals who have mortgage protection with Norwich Union arranged through the Trustee Saving Bank are, for the most part, neither policyholders nor members of Norwich Union. The payments made to the Trustee Savings Bank act as a reimbursement for the policy premium paid by the Trustee Savings Bank which is the actual policyholder.

Brendan Kenneally

Ceist:

78 Mr. Kenneally asked the Minister for Enterprise and Employment the role, if any, he has in the decision of Norwich Union to seek a Stock Exchange flotation; and if he will make a statement on the matter. [19629/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

I do not have a role in the London Stock Exchange flotation to be sought by the Norwick Union Life Insurance Society. However, the flotation will result in a transfer of the Irish branch business of Norwich Union to a new company. In this case, my only function is to be consulted, in relation to this transfer, by the United Kingdom Department of Trade and Industry, who are the supervisory authorities for Norwich Union Life Insurance Society.

If I am satisfied, on the basis of an examination including an actuarial examination of the scheme of transfer, that the reasonable expectations of policyholders as a whole in the Irish branch have been safeguarded, I will indicate as much to the UK authorities.

The UK High Court will, then, decide whether or not to sanction the transfer, based on actuarial reports, the views of supervisory authorities and observations, if any, from policyholders.