Standard Life succeeds in £100m sterling fund claim
Standard Life has succeeded in a claim against 11 professional indemnity insurers after the provider was forced to inject £100m into the Standard Life pension sterling fund during the credit crunch.
Standard Life says the 11 firms, which provided PI insurance to the provider, should have covered the costs of the £100m payment, which was made in February 2009 after the fund suffered losses.
Former chief executive Sandy Crombie said the company’s response to the losses was motivated by a desire to “do the right thing”.
A judgment handed down in the Commercial Court in London today found in favour of Standard Life. The 11 insurers have been granted leave to appeal.
Money Marketing first revealed a dramatic 5 per cent fall in the value of the fund, which had 97,000 investors, in January 2009.
In February 2009, Standard Life announced plans to compensate all investors who lost out as a result of the revaluation.
The FSA subsequently fined the provider £2.45m for serious systems and controls failings that resulted in the production of misleading marketing material in relation to the fund.