Following announcements of the departure of Scottish Widows Chief Executive, Mike Ross, two weeks ago, following a shake up by parent, Lloyds TSB. It now seems that the changes for business plans and structure over the next 5 years are due to be released this is next week. The troubled insurer has been under increasing pressure from its parent Lloyds, with literally billions being set aside for mis-selling compensation etc. The plan anticipated, and partially disclosed by newly appointed Archie Kane, who anticipates a much more streamlined approach to sell the Scottish Widows Brand to the masses via Lloyds, C&G and via its own sales forces and Independent Financial Advisers.
Our View
No change there then - we always thought this was and is Scottish Widows target. There service is good, there investment performance is not spectacular, although certain funds are doing very well. Here lies the problem market perception of both performance and the insurer's future in doubt.