Around 90,000 Irish members of life assurer Standard Life are in line for windfalls following the company's announcement that it is likely to demutualise.
The Edinburgh-based company said yesterday that it was becoming "increasingly capital constrained" and that demutualisation was in the best interests of the company and its policyholders.
A proposal on the move will be put to qualifying members at its 2006 a.g.m.
Standard Life said it planned to cut 1,000 jobs from its life and pensions business in the UK and would not be proceeding with a new operation in France.
There will be no redundancies in the Republic, where Standard Life employs 240 people.
The company has also decided to close its defined benefit pension scheme to new entrants from November 16th. New employees will enter into a defined contribution scheme, which will not give members any guaranteed level of pension.
Standard Life has 120,000 customers in the Republic. However, up to 30,000 hold mortgage protection or small savings products and will not be eligible for any windfall. Holders of Special Savings Incentive Accounts (SSIAs) will qualify.
Any with-profits member who signed a three-year waiver before yesterday will now be eligible to benefit from any flotation. However, anyone taking out a with-profits policy on or after March 31st will not qualify.
Analysts have suggested that the company could raise £3-£4 billion (€4.5-€6 billion) if it seeks a stock market listing, but it is not clear how much policyholders could expect to be paid.
