Pegasus, the protection arm of Scottish Mutual, will disappear on August 1
once parent company Abbey National's purchase of Scottish Provident is
The announcement has surprised IFAs and rivals who say Pegasus has a
strong name in the protection market.
Following a successful vote at an extraordinary general meeting this
month, only a second vote of ScotProv policyholders and court approval
stand in the way of the acquisition.
ScotProv and Scottish Mutual are writing to 15,000 IFAs to tell them of
product changes following the takeover.
The move to replace ScotProv's long-term care bond with an LTC option on
Pegasus' whole-life plan has been questioned by some IFAs who say the two
are entirely different types of product. They say the bond includes
features which make it stronger than the LTC option.
But Scottish Mutual argues that sales of the Pegasus ltc option greatly
outstrip the Scot Prov bond.
Pegasus' whole-life plan will replace ScotProv's Life-time Plan, Pegasus'
personal term plan will close on July 31 and the two critical-illness plans
will be merged.
Scottish Mutual spokes-woman Christine Mc-Allister says: “Pegasus will no
longer be a brand name, it will only exist as a contract name. Scottish
Provident will be the brand. It is such a strong asset.”
Skandia Life marketing manager Lynda Cox says: “I am surprised. The
Pegasus products have had a good following for a long time.”
IFA Portfolio Insurance Consultancy prin-cipal Brian Lentz says:”I am
surprised to hear that the Pegasus name will be withdrawn. Bro-kers have
identified with the name in the past as far as critical-illness plans are