UK insurance life funds: orphan estates

At about the turn of the last century there were several reports of some types of insurance companies releasing assets from their invested life funds. The assets in question are of uncertain ownership, but are sometimes referred to as ‘orphan assets’ or the ‘orphan estate’. Members have received letters from constituents arguing that if any assets are to be released from the life funds, the policyholders rather than the shareholders should be the beneficiaries. Many of these letters relate specifically to one company, the Prudential. This note provides a simplified guide to the policy and practice in this area, and then deals specifically with the Prudential case.