D-day for Standard Life over stock market float
Standard Life will discover today whether members have backed proposals to end 80 years as a mutually-owned company.
The support of 75% of those who vote on the plan will be required for the demutualisation to go ahead, but with average windfalls of £1,700 (€2,500) on offer it is unlikely that Standard will be disappointed at its special meeting in Edinburgh.
Around 2.4 million members are eligible for windfalls, with the group looking for a turnout well in excess of one million, as it needs to prove to Scottish courts that its demutualisation has sufficient support.
Postal voting closed at midnight on Sunday, although members will be able to vote at the meeting, which starts at 11am.
More details on the subsequent stock market listing will emerge next month, but in the meantime Standard and its policyholders will hope for an end to recent market volatility, particularly as any fall in the valuation of insurers could lead to a reduction in the flotation price of Standard and accordingly the size of windfalls.
Standard has reorganised its business to prepare for the listing, with figures yesterday showing first quarter profits from new business at a better-than-expected £30m (€44), compared with £33m (€48m) for the whole of last year.
As well as efficiency savings, Standard has targeted more profitable business such as self-invested personal pensions.
Around half of the membership will earn £500 (€731) to £1,000 (€1,500) if the proposals are approved, with the remainder collecting in excess of that.
The windfalls will be largest for people who took out a with-profits policy a long time ago and have invested significant sums in it since then.
Standard said in April it was pressing ahead with the flotation to raise £1.1bn (€1.6bn) after rebuffing approaches from a string of parties in recent weeks, including an all-share merger.
In a 112-page pack sent to members, Standard asked for support for the demutualisation on the grounds that it wanted to shift risk from members to shareholders, generate external funds and unlock hidden value.
The flotation is expected to value Standard at between £4.8bn (€7bn) and £5.5bn (€8bn).
