Scottish Provident in windfall vote

Some policyholders have pushed for demutualisation

Members of Edinburgh-based financial services company Scottish Provident are set to vote on plans to demutualise.

The 164-year-old life company has 400,000 members who are in line for windfalls of at least £500 each - and some could get more than £100,000.

Voting papers are being sent out on Tuesday, but customers will have to wait some time before they get their cheques.

Scottish Provident was founded in 1837 and now has more than £10bn under management.

Scottish Provident

Founded 164 years ago

Manages assets worth £10.5bn

Employs more than 2,500 staff across Britain, Ireland, the Isle of Man, Spain and Greece

750,000 policyholders, but only 400,000 mutual members will receive windfall payments

It is one of the largest companies in the market selling protection products, such as insurance against sickness.

Last spring, the company announced a review after it had been targeted by a group of disgruntled policyholders who wanted it to convert to a public limited company.

In September, Scottish Provident announced it had agreed a deal to be bought over by the Abbey National.

The deal will go through if 75% of members voting back the plan.

Qualifying members - those with with profits policies - will be eligible for a basic windfall of £500.

Additional variable compensation will also be paid to 385,000 members. The amount will depend on the type and size of the policy held.

The average windfall is likely to be about £3,500, but some members will get a six figure sum.