MANY OF Standard Life's already battered and bruised policyholders are likely to face even bigger shortfalls than anticipated when they receive their annual statements over the next few weeks.
According to the Scotsman, more of the mutual's mortgage endowment customers may also find themselves with a shortfall on their policy.
In the beginning of the year, Standard Life was forced to reduce the amount of policyholders’ money it holds in shares after the FSA introduced its new solvency rules for insurers.
Back then, Standard Life chief executive Sandy Crombie, said 86% of the firm’s 1.2m mortgage endowment policyholders were destined to face a shortfall. Today, most of them can now expect that shortfall to have grown, the Scotsman adds.
Furthermore, more policyholders are also likely to be receiving "red letter" warnings indicating that their policy is to face a shortfall.
A spokesman for Standard Life told the paper: "The simple way to put it is that, yes, in the majority of cases, people will find themselves either with a shortfall that they didn’t have before or with one that has increased.
"However, it is entirely dependent on the type of policy that you have and the important thing for policyholders is to wait for their statement to see the full effect on their policy, which will be detailed in full in that statement."
WHILE STANDARD Life policyholder may have to embrace themselves for further misfortunes, Marks & Spencer shareholders were yesterday dealt another blow after the retailer's shares dropped to their lowest point for more than a year, reports the Daily Telegraph.
The fall, paced by poor clothing sales, came after the company surprised the City with much worse than expected fourth quarter trading.
This is the fifth quarter of disappointing clothing sales for the retailer.
FRIENDS PROVIDENT savers, on the other hand, could be cashing in after the Scotsman reveals that more than 100,000 members have not yet claimed their slice of a £50 million share windfall.
Qualifying members gained shares when the company floated in July 2001, but so far 131,000 eligible people have not applied.
However, savers looking to receive extra money have to hurry as shares that have not been allocated by 9 July will be sold.IFAonline
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