Standard Considers Demutualisation Plus New Chief!

Standard Life, Europe's largest mutual company (owned by members and not shareholders), is to consider demutualisation as part of a strategic review of its business model.

In summary Standard Life stated that:

• Constructive discussions with FSA were concluded. 
• Standard Life reaffirmed that its financial position is very strong in relative and absolute terms. 
• There will be no impact on current surrender values, transfer values or payouts as a result of today's announcement.  Illustrations for new and existing with profits policies reduced.  No impact on unit-linked and non with profits policyholders.
• Policyholders will be informed individually in the coming weeks of the implications of these changes. 
• Standard's Board will commission a strategic review in the light of changes in industry and regulatory environment. 

Sir Brian Stewart, Chairman said: "The FSA is implementing a new approach to improve financial reporting for insurance companies which will better reflect companies' underlying financial strength.  We fully support this regulatory direction and have spent a number of weeks discussing how the new draft regulations impact on Standard Life.  These discussions have been intense, but ultimately we have a conclusion that is satisfactory to both parties, and in particular for our policyholders.

"Standard Life remains financially strong, with a great brand, low costs, outstanding products and superb customer service. There are tremendous growth opportunities for us. However, we have to recognise that the world is changing and this is why the Board has commissioned a strategic review to examine how we should best respond to this changing industry and regulatory environment."

In addition, they have also today appointed a new Group Chief Executive!

They today announced the appointment of Sandy Crombie as the Company's Group Chief Executive, replacing Iain Lumsden with immediate effect.  This follows Iain Lumsden's decision to retire after 36 years of service.

Our View

Well what a turnaorund.  Things are going to be quite execiting in the Standard camp over the next few months. 

If you have a with profits policy - sit tight and wait to see things develop.  We will keep you right up to date with all the news.