Standard Life Floatation

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tarquincat
tarquincat Posts: 56 Forumite
in Mortgages & endowments
Does anyone have any calculcations on what the company might be worth on floatation & what policy holders might get ?

S L themselves say it will depend on market conditions at the time, but presumably won't say anything about current market conditions as a guidline as people will presumably demand what they calculate.

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  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    Hi tarquin cat

    The latest on the market value is around 6bn pounds or a bit more, ie getting towards the same size as Legal and General.

    The windfall will be in two bits as usual, a flat rate that everyone gets, likely to be 500 quid, and a percentage based variable bit. The latter is based on the size of your policy and how long you have been a member.

    I'd be very surprised if the variable paid less than an average of around 10%, but it really does depend on market conditions closer to the time, and also on how successfully management cleans up the company.There's no doubt it got itself into a bad mess a couple of years ago, but recovery seems to be well under way now. :)

    The figures you see in the papers are somewhat below this, but management have indicated they are trying not to inflate expectations - they don't want people making financial decisions based on a likely windfall as there's still no certainty on the DM.The vote's not till May after all and they have to get 75% in favour.
    Trying to keep it simple...;)
  • tarquincat
    tarquincat Posts: 56 Forumite
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    Ed,
    Thanks for that, I can see why Standard Life will not give any projections, but it is good to have and estimate from someone based on current figures.
  • Lucy_Lastic
    Lucy_Lastic Posts: 735 Forumite
    First Anniversary
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    Would the (possible) 500 quid be per person or per policy? I have 3 policies.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    Per person ( ie per membership, you can only be a member once).

    But the (percentage based) variable windfall would be based on the value of all three policies and the length of time you have had them.
    Trying to keep it simple...;)
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