Customers might be in line for up to £3,500, as surplus life fund monies are redistributed.
Some life insurance policyholders at UK provider Norwich Union are to gain windfall payments of between £400 and £3,500.
The firm's owners, Aviva, said today that surplus assets in life funds would be freed up in the move - which will see around 700,000 people paid a sum from £400 to £1,000, and a further 220,000 being given up to £3,500. These payments will be available to holders of two of Norwich Union's with-profit savings funds, CGNU Life and CULAC.
They have been offered by the firm in exchange for the policyholders' giving up the right to receive further payouts in the future. Taking up the offer is entirely optional.
Aviva has also announced a rise in half-year profits, with net earnings rising 12 percent over 2007 to hit £1.72 billion. The insurer indicated that rapidly rising sales in North America and Asia had offset more sluggish growth in Europe.
Chief executive Andrew Moss added: "In the face of economic headwinds, Aviva has made real progress in the last six months."
Policyholders who take up the offer are scheduled by Aviva to be told of the level of their payments later this year - with the cash transfers themselves to be made in 2009.
