Friends Provident could be the next insurer to come under pressure to give up its mutual status. This week the campaigner who led a successful bid to have insurer Scottish Provident consider demutualisation said he was turning his attention to its rival Friends Provident and was seeking support from other members.
Mr Gordon Hart said campaigners were concerned about endowment shortfalls and poor with-profits performance. He urged 100 members to back the call and for an emergency general meeting to be held soon after the insurer's annual meeting on May 31st. The campaign follows similar lobbying by some members of another Scottish insurer, the massive Standard Life, which has said a vote on demutualisation was likely.
Scottish Provident said three weeks ago, in response to campaigners' demand for a vote on demutualisation, that it had appointed advisers to consider its structure. Mr Hart claimed this as a success.
If approved, the change in status would trigger windfall gains for qualifying policy-holders in those companies. Mr Hart said he expected a minimum windfall for Friends Provident members of £1,000 sterling (£1,333). Standard Life members are thought to be in line for up to £6,000 sterling (£8,000) if the change of status is approved.
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