STANDARD LIFE

Summary

That this House supports the unanimous and firmly held view of the Board of Directors of Standard Life that mutuality is in the best interests of the company and its policy holders; recognises that the payouts from mutual insurance companies are higher than for public limited companies and that on average Standard Life's returns to policy holders have, over a long period, being around 9 per cent. higher than equivalent plcs; believes that it is vital that the option of investing in a mutual insurer should remain a vibrant and real choice for the public, and that there is a systemic interest in maintaining a competitive mutual sector for the benefit of all consumers; notes that actual windfall payments to the majority of Standard Life members will be considerably less than the 'average' quoted in the media and by those who wish the company to demutualise; endorses the view that a mutual life company has responsibilities to both current and future members; is concerned that if Standard Life, as the biggest mutual company in Europe, demutualises, then it is likely that, ultimately, a large part of the UK insurance sector will end up being controlled from abroad; and calls upon the carpetbaggers' group to state publicly that they will accept the result of the ballot on the special resolutions that they are moving at the special general meeting on 27th June.

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Timeline

1. 19 May 2000

   Early Day Motion

   That this House supports the unanimous and firmly held view of the Board of Directors of Standard Life that mutuality is in the best interests of the company and its policy holders; recognises that the payouts from mutual insurance companies are higher than for public limited companies and that on average Standard Life's returns to policy holders have, over a long period, being around 9 per cent. higher than equivalent plcs; believes that it is vital that the option of investing in a mutual insurer should remain a vibrant and real choice for the public, and that there is a systemic interest in maintaining a competitive mutual sector for the benefit of all consumers; notes that actual windfall payments to the majority of Standard Life members will be considerably less than the 'average' quoted in the media and by those who wish the company to demutualise; endorses the view that a mutual life company has responsibilities to both current and future members; is concerned that if Standard Life, as the biggest mutual company in Europe, demutualises, then it is likely that, ultimately, a large part of the UK insurance sector will end up being controlled from abroad; and calls upon the carpetbaggers' group to state publicly that they will accept the result of the ballot on the special resolutions that they are moving at the special general meeting on 27th June.

   Source: Early Day Motion

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Sponsors

• Mr Andrew Love · Labour · Primary sponsor

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