Scottish Provident's 73,000 members in the Republic will share a windfall payment of around £200 million sterling (€320 million) this winter if the transfer of the company's business to Abbey National is approved next month. Qualifying members of the 160-year-old mutual company will get at least £500 each to compensate them for loss of their membership rights.
Some 68,000 holders of with-profit policies will also receive variable compensation depending on the type and size of policy they hold, the length of time the policy has been in force and its maturity date.
The average size of the variable payout to the company's with-profit policyholders in the Republic and Britain is estimated at £3,400.
Only those who held with-profit policies prior to the cut-off date of April 6th, 2000 will be eligible to vote on the transfer of business to Abbey National and to receive compensation.
For the transfer of Scottish Provident's business to go ahead, it must be approved by 75 per cent of the votes cast at two extraordinary meetings in June. If approved, and it is cleared by the Scottish Court of Session and other regulatory authorities, the deal should be completed by the middle of July, according to Scottish Provident group managing director Mr David Woods in Dublin yesterday.
Compensation would then be finalised and allocated to qualifying members in the winter of 2001/2002, he said.
The transfer to Abbey National should not materially affect Scottish Provident's business in the Republic, or its 200 staff, apart from providing further opportunity for growth, according to Mr Woods.
