More than 1m with-profits policyholders at Norwich Union are in line to receive policy bonuses averaging £2,000 from a distribution of the life insurer’s “inherited estate”. The carve-up of the surplus monies, sometimes called orphan assets, could also yield cash payouts for these NU customers, while at the Prudential another 4.5m policyholders could benefit from a similar payout.

But Which?, the consumer organisation, warns that policyholders at the two insurers risk being shortchanged by up to £7bn because of disputed ownership of these funds.