View more on these topics

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


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surprised to hear that the Pegasus name will be withdrawn.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




Policy Portfolio offering guide to aid Tep sales

Traded endowment policy market-maker Policy Portfolio is offering a freeguide to help IFAs explain the benefits of Teps to their clients. Policy Portfolio says Teps let IFAs provide clients with two distinctopportunities to make money. First, it says clients wanting to surrender with-profits endowmentpolicies may be able to get substantially more than the life officesurrender […]

War on Want promotes SRI to pension managers

Charity War on Want is launching a Just Pensions toolkit which is a new information pack for pension fund trustees and fund managers providing advice on how to improve the impact of pension fund investment on social needs. The moves comes ahead of the first anniversary of the new amendment to the Pensions Act, requiring […]

Sandler adds fuel to review worries

Ron Sandler, the head of the Treasury investigation into the retailinvestments, has stoked IFA fears about his review by claiming distributionhas an inbuilt ambiguity. In an interview in the Sun-day Times, Sandler said there is prima facieevidence that unit trust charges are high and acknowledged the high levelof concern about with-profits. His comments suggest that […]

Police Mutual appoints chief executive

Police Mutual Assurance Society, one of the UK&#39s largest friendly societies with assets over £1bn, is appointing Graham Berville as chief executive, to succeed Peter Sharpe.Berville joins Police Mutual from CGNU where he was a director in the UK life operation. Berville was previously with the Automobile Association in a variety of roles in their […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm