Standard Life windfall news

EdInvestor

All these windfall payments don't come from thin air

There is a misconception (put about by management in 2000 to persuade people to vote No to DM) that has fooled some people.This is that the windfall money must come out of the WP fund and thus it is weakened and there will be no money in future for their policies.

This is actually the opposite of what happens.

At the float, the company issues the shares (formerly certificates, now mainly done electronically) and you can then sell them for cash.Where does the cash come from?From the pocket of whoever buys them - which will be another investor, probably a City fund manager.

Certainly not from Standard Life.

Indeed more money will be coming into the WP fund from the float, because Standard will issue some extra shares, and keep this money for itself. This is called raising new capital.

Hope that's clear.

savingpennies

We've just received our information and we have been allocated 742 shares. We are definitely voting for demutalisation. We were warned three years ago that our endowment looks like it will come nowhere near the £28,000 predicted back in 1987. We'll sell the shares, cash in the policy and use the money to help pay off the mortgage and the monthly premium we have been paying all these years will also go toward paying the mortgage. To be honest I can't wait to get rid.

Bagger

As RI said earlier, can those of you who have received their information from SL please post some more details. For example, how long have you been with SL? What is the value of your WP policy? How many shares have you been allocated? This will give us some idea of how SL are allocating shares.

Thanks

Bagger

savingpennies

Happy to oblige. Policy started September 1987. Current value as as February 2006 £13,041.95. Shares allocated 742.

ReportInvestor

Thanks sp,

Could you confirm that's a 25 year WP endowment policy? And if so what are the monthly premiums?

I estimate that you've got a variable rate windfall of 11.3% of the policy value .

EdInvestor

Just to note that the windfall bonus would be calculated on the 2004 current value.

savingpennies

Yes, 25 year policy so due to run until 2012. Monthly premium £40.48.

Jo_anne_2

Bagger wrote:

As RI said earlier, can those of you who have received their information from SL please post some more details. For example, how long have you been with SL? What is the value of your WP policy? How many shares have you been allocated? This will give us some idea of how SL are allocating shares.

Thanks

Bagger

Dec 1987 sum assured with profits £6750, current value £9228, matures Dec 2010, monthly premium £28.94.
Also Sept 1989 summ assured £819, current value £1119 , matures Sept 2008, monthly premium £5.07 - share allocation (both policies) 615.

bobber

Hello

I received my pack in the post this morning, so here's the details if it helps others.

Shares allocated 385
25 year WP endowment policy started in 92 for £37000
Monthly premium £50.20
Total surrender value Sept 05 £7903.92 - no idea what the surrender value would have been in 2004

bluenose1

I am still waiting to find out my share allocation.
When I do receive this information is there anyway to find out how much the shares are likelt to be worth so that I can calculate what my windfall is likely to be.
Regards
Anne