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Pegasus to be grounded after takeover

Pegasus, the protection arm of Scottish Mutual, will disappear on August 1

once parent company Abbey National&#39s purchase of Scottish Provident is

complete.

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&#39s long-term care bond with an LTC option on

Pegasus&#39 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&#39 whole-life plan will replace ScotProv&#39s Life-time Plan, Pegasus&#39

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surprised to hear that the Pegasus name will be withdrawn.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

concerned.”

DOCE:

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