R&SA writing to policyholders

Royal & Sun Alliance, awaiting notification of the size of fine for pension mis-selling to be imposed by the FSA, is planning to write to 50,000 policyholders who retired between 1999 and December 200 and may be entitled to compensation over the payment of guaranteed pensions. This in line with the House of Lords ruling in Equitable Life . R&SA has already set aside £1.2bn to pay guaranteed annuities to about 260,000 policyholders not as yet retired, and expects compensation to the already-retired will cost an additional £80mn.