Industry
Standard Life has confirmed that it intends to recommend demutualisation to its members and list itself on the London Stock Exchange.
The Edinburgh-based insurer has written to all eligible members to confirm their policy and contact details to ensure they receive their entitlements. It has finally admitted plans to float on the stock market in 2006, most likely in the summer after the company's special general meeting.
The announcement brings to a close one of the most protracted demutualisation sagas in years. In 2000 members tried, unsuccessfully, to force the insurer into floating, hoping to secure windfalls. At the time Standard Life was valued at around £12bn; today it is worth an estimated £4bn to £6bn.
Demutualisation will be put to the vote at next year's special general meeting, where 75% of members will have to agree to the flotation for it to go ahead. Regardless of the outcome, the changes will mean little for those with healthcare and protection policies.
"To vote on the subject or to receive any financial benefits from the demutualisation, a customer has to be a with-profits policyholder," said Barry Cameron, public relations manager at Standard Life. "Neither protection nor healthcare customers fall inside this category, so it will not affect them at all,"
"I can reveal, however, that we are considering whether to offer other customers shares at a preferential rate. This is certainly an option but it is too early to discuss how many customers would be involved and how many shares they could buy.
"In terms of a time frame, we will not be writing to non with-profits policyholders until six weeks ahead of our special general meeting that will take place in May or June next year, so there is still a long way to go."
