I'm gonna vote NO to Standard's Demutualisation!

EdInvestor

vinno65 wrote:

Hi edinvestor,
No I won't be getting any shares as i have no policies with SL. What people need to realise however is that the money they are getting as a windfall is in fact theirs anyway.[/qupote]

True.The members are the owners of the company and the windfall is the realisation of the value of their ownership stake.

Also the windfall will be nowhere near projected shortfalls on their endowments.

Sadly not.What a pity we weren't able to realise the much higher value of our company in 2000.:(

Finally do you think the de-mutualisation will be good for SL endowment policyholders?
regards Vinno

I do.

Ian_W

vinno,
In principle and sentiment I can't knock your arguments - but I think SL members are faced with a very stark choice due to inept management by a mutual board so far removed and unanswerable to them that it has brought a once great instituation [and I don't think that overstates SLs position in the 80/90's] almost to it's knees, costing PHs billions.

The choice to remain mutual carries IMO a very real risk that it will go the same way as Equitable Life and have to close to new business, even if that doesn't happen the chances of recovering WP shortfalls are frankly nil.

EdInvestor is wrong in saying that the windfall is the realisation of the value of their ownership stake - as I understand it it's the realisation of 80% of their ownship with 20% being sold to the market. That 20% will raise over a £billion which is small beer compared to the losses but never the less a not insignificant sum in terms of SLs long term survival.

On that basis, as far as I can see, DM is the only game in town. Staying mutual won't do anything for the shortfalls of PHs, going public with the safeguards outlined in the scheme just might help. As for ignoring the plight of PHs as they're old business - for some time at least a majority of shareholders are likely also to be policyholders.

ReportInvestor

Vote no and they may raise the MVR / MVA or reduce surrender values on with profits policies.

None of us would be laughing then.