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Cazalet warns Standard listing will be no cash windfall

Standard Life is almost certain to demutualise but there will not be a windfall bonanza for policyholders, according to leading insurance analyst Ned Cazalet.

Cazalet says the life office will need to float at about £3-4bn, assuming there has already been a much-needed substantial capital injection. But as Standard is demutualising out of necessity he says there are unlikely to be cash windfalls to policyholders, especially those in its “effectively closed” £30bn with-profits fund. Cazalet does not know how much Standard would raise were it to float &#45 an event he says may not take place until late 2005 &#45 but he believes it will be a fraction of £16bn he calculated it would be worth in 2000. But he says the biggest challenges facing the management will be to repair the damage to its brand and to find ways to write new business.

He says: “We will be seeing with-profits returns being cut, the equity weighting being cut and trading further down the scale. It will be a real job by the management to stop it sliding further, that cock-up factor. How can it limit the damage? That will be the real test.”


The right route to regulation

With the final mortgage rules now published and applications for FSA authorisation opening this month, everyone who receives enquiries about mortgages must be giving serious thought to their future status. Direct authorisation? Principal? Appointed representative? Introducer only? The choice will be influenced strongly by the question of how best to source compliance support, either in […]

Five-year float plan for Interlink

Interlink Premier Network is inviting members to participate in its flotation plans by making a minimum £5,000 investment. Interlink has sent a letter to its 188-RI membership and will push ahead with plans for a listing if there is enough interest. Chairman Jim Gaskin, who previously chaired Countrywide, will hold a meeting this month to […]

Direct Life aiming for principal status as it starts network

Direct Life and Pension Services is to seek principal status from the FSA as it starts a mortgage and insurance network. Sales and marketing director Richard Verdin says the new venture, Enable, will offer all the regular network services including a mortgage club and free mortgage sourcing, plus access to products from leading UK insurers, […]


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