Pension scandal to cost L&G 600m
Article Abstract:
Legal & General revealed on 23 July 1998 that GB 500mn-GB 1bn would be set aside to atone for the pensions mis-selling controversy, among the largest provision so far related to the scandal by a UK-based insurer. Legal & General is close to completing the initial stage of its pension study, covering urgent claims, and plans to deal with the 1.5mn less pressing claims during the second stage. The overall cost of the controversy could be GB 11bn and given that Legal & General has a 5% pensions market share, its provision would be GB 600mn. Indications are that Legal & General shareholders will pay the provision to ensure that current policyholders do not suffer lower payouts. Legal & General revealed too that the cost of altering systems to deal with the euro, or single European currency, could be around GB 90mn, meaning that the UK pensions market's total bill could be as much as GB 6bn.
Comment:
To set aside GBP500 mil-GBP1 bil to atone for pensions mis-selling controversy
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Sub Life name to vanish as Axa group rebrands
Article Abstract:
French insurance group, Axa, will rebrand its worldwide operations in a move which will result in the disappearance of the Sun Life name in the UK. Axa assumed control of the 72% stake in UK life assurance group Sun Life & Provincial when it integrated with French insurer, UAP, in June 1998. Sun Life chief executive, Mark Wood, revealed that his company is constantly being wrongly mistaken for Sun Life of Canada. Axa chief, Claude Bebear, is known to be looking to increase the group's UK presence, leading to rumours of a bid for Norwich Union. Axa's first move ill be to change the Sun Life & Provincial name to just Sun Life.
Comment:
Will rebrand worldwide operations in move which will result in disappearance of Sun Life name in UK
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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