Scottish Widows pays loan notes on demutualisation

Scottish Widows has paid out £335m in the first of its loan notes compensation to with-profit policyholders, following sale of the mutual insurer to LloydsTSB Group last year. Average payments totalling £5,701 have been made to about 955,000 SW members holding with-profit policies since payments began last August, however policyholders who had opted to receive loan notes only received their first payments earlier this month. More than 67,000 qualifying members previously elected to receive their compensation in the form of loan notes as a result of the transfer of Scottish Widows. ...