Standard Life made a pre-tax loss of £340m in 2004 and saw new business revenue fall £132m in new business, according to details of the life insurer's flotation proposals.
The life company revealed the figures this morning as part of the details of its demutualisation plans, which would see the firm float with a value of between £4.8bn and £5.5bn giving around half of eligible members shares valued at between £500 and £1000.
The life office says its advisers Merrill Lynch and UBS have both estimated that had ordinary shares of Standard Life plc traded on the stock market on 13 April, they would have done so within a price range of around 240p and 290p a share.
Each eligible member will receive 185 shares, but see their windfall boosted further by additional shares, depending on their membership status with the life group.
However, details of the flotation plan also reveal 2004 business figures reflected a dismal year for the life office, particularly given they represent a thirteen-month year as Standard moved its year end reporting date from the end of November to the end of Decemberto comply with the adoption of new international financial reporting standards.
Business figures for 2005 show an improvement in Standard Life’s fortunes asnew business contributions increased to £33m for the 12 months to 31 December 2005 and pre-tax profit rose to £152m.
Sandy Crombie, group chief executive at Standard Life, says: “We have made significant progress in the last two years and generated positive momentum in the business that is delivering results. We have improved the profitability of the group. Our strong brand high-quality customer service, extensive range of financial products and a base of seven million customers give bus great confidence in the business.”
Standard Life is mailing members and policyholders today with details of the proposed flotation. They will have until midnight on 28 May to return their voting forms regarding the proposed flotation while a special general meeting has been called for 11am on 31 May at the Edinburgh International Conference Centre.
The life office needs the support of 75% of members to go ahead and assuming members and policyholders vote for the flotation and subject to approval from the Court of Session in Scotland, Standard Life is then expected to become a listed company from July.
Sir Brian Stewart, chairman of Standard Life, says: “After reviewing the options available to Standard Life, the board believes that demutualisation and flotation is in the best interests of members, policyholders and the business.
“The board unanimously recommends the proposal and urges all our voting members to support our demutualisation and flotation proposal by voting yes.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
Banned for a total of 34 years
Self-administered pensions reported net investment £4.7bn in Q2
Was responsible for IT and transformation
There are 1,840 asset management firms with £8trn AUM
Also unveils trust IPO raised £100m