Standard Life will remain a mutual company, according to the group finance director, Mr Iain Lumsden.

In a letter to insurance brokers, Mr Lumsden ruled out demutualisation, stating that the company believed "remaining mutual is in the best interests of its policyholders".

Mutual life assurance companies are owned by their policyholders. Demutualisation involves converting the mutual into a limited company and, in most cases, flotation on the stock market.