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WP balance sheet &#39shows no cause for alarm&#39

Industry experts say Standard Life&#39s realistic with-profits balance sheet is in line with earlier estimates and shows no cause for alarm.

The company submitted its realistic balance sheet to the FSA last week, on the same day that it announced it intended to push for demutualisation. The figures show a realistic surplus of £4.6bn, more than twice the risk capital margin, with assets available above liabilities and capital requirements standing at £2.5bn.

Hargreaves Lansdown head of pensions research Tom McPhail says the realistic balance sheet figures are in line with those stated earlier in the year, showing that Standard has sufficient cash to meet liabilities, with some left over, and there are no immediate concerns about solvency.

Rating agency Standard & Poor&#39s says its ratings for Standard are unaffected by last week&#39s announcement.

Standard&#39s announcement has caused Liverpool Victoria to come out in support of mutuality. It says the business model is strong and viable if managed carefully and consistently.

Chief executive Malcolm Berryman says: “LivVic is financially strong and does not need to raise additional capital in the money markets. Our aim is to provide value to our members. We are successfully delivering this strategy and it is enhanced by our mutual status.”

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