Standard to raise cash in 2006 flotation.

(From Irish Independent)

LIFE assurance giant Standard Life will end its status as Europe's largest mutual for a stock market listing to cope with tough new funding rules which will force it to raise fresh capital, the firm said yesterday.

The move, expected within two years, will mean a potential windfall for most of the 2.6million policyholders - and out of the 150,000 who live in Ireland, some 90,000 may qualify for the payout.

But chief executive Sandy Crombie remained tight-lipped on what sort of market value heexpected Standard Life would have following a listing, or what sort of windfall the group's members could expect to receive from a flotation.

Estimates suggest that had members agreed to a demutualisation four years ago, theywould have received average windfalls worth about GBP5,500 ([euro]7,800) - but this has fallen to about GBP2,000 ([euro]2,800).

"It depends on how the business progresses between now and then, but the present sources of capital cannot continue to support a growing business," he said in a press briefing.

The 179-year-old Edinburgh-based company will also slash around 1,000 UK jobs during the year, and has halted plans for a new business in France as the new ...