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Large mutuals to go within two years

The large mutual insurance company is set to become a thing of the past according to a report by market analysts&#39 Datamonitor.


It claims the remaining major mutual life companies, with the exception of Standard Life will all give up their mutual status within the next two years.


Datamonitor says this will come about as the mutuals succumb to the pressure of squeezed margins brought about by the low interest rate and inflationary environment and onset of stakeholder pensions.


The report says: &#34The decision by Scottish Widows, the second largest mutual and one that had hitherto been considered to possess the necessary size and strength of brand to retain mutual status, has thrown into sharp relief the problems faced by mutual organisations.


&#34The Widow will therefore not be the last mutual to be courted by a financially more virile suitor.&#34

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