# Scottish Provident and Scottish Mutual close to new business



## Brendan Burgess (1 May 2003)

What does this say about profitability in the life and pensions business? 

Scottish Provident were paying full commission on PRSA style products which industry insiders said was unsustainable. 

Will it lead to other providers leaving the Irish market. I note that Quinn Life hasn't launched a PRSA.

Brendan


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## dumdum (1 May 2003)

*Scot Prov R.I.P. (?)*

On the back of Brendan's post ('though slightly tangential to it), I'm just wondering how holders of Scot Prov (Irl) With-Profits policies are feeling, and particularly those with policies due to mature in the near future..? I have a 10-year policy maturing in 2005, which was performing moderately well until a couple of years ago — and admittedly netted me a nice compensation payment following their demutualisation and sale to Abbey Nat  — but Scot Prov were also among the first companies to declare a zero annual bonus this year and, as far as I can gather, their terminal bonuses (the real sweetener, for a single-premium policy for mine) have also been slashed pretty dramatically. I wrote to them a month or two ago enquiring about 2003 terminal bonuses/current MVAs, etc and asking for a quote as to my own policy's (net) surrender value, were I to cut and run now, after 8 years — but have heard nothing since. I guess they have bigger problems to worry about, at the moment... :-(

Anyone in the same boat, or with any further light to shed on the matter?

Sigh...


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## fk (1 May 2003)

*SP*

"Abbey National's decision, announced on 26 February, to FOCUS SOLELY ON PROVIDING PERSONAL FINANCIAL SERVICES IN THE UK HAD CLEAR IMPLICATIONS FOR OUR INTERNATIONAL LIFE BUSINESS."

They sought new owners but decided it was not practicable to continue with the sale option in respect of SPIreland.


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## Insider (2 May 2003)

*Scot Prov*

Abbey Nats decision had nothing to do with commission on their PRSA Friendly contract Brendan. Scot Prov were paying more commission than others @ 25/4 but as soon as the market settled down they would have realigned. If you look at the annual report Scot Prov Ireland are profitable. 

Abbey Nat needed to sort out the bank in the UK to up the share price and to do that they needed to concentrate on the UK. They have closed/sold all their non UK assets including their share in Sydney Airport!!!

Scot Prov could have been a force in the Irish market going forward but when you are part of a large plc you don't often get asked. The timing of the sale was awful with the financial services industry reeling from four years of turbulent stockmarkets and no money to spare.

Scot Prov and my colleagues RIP

Ex insider!!


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## joeysoap (2 May 2003)

*scottish provident*

I had 3 different sp policies 
1 matured in 2002  and was good (in retrospect was great) also received a windfall from it
1 was a fund called 97% which in theory was good but in reality was wrong for what happened thought it  did limit the losses in any particular quarter to 3% of previous  quarters value. 
both of above cashed in. 1  profitable 1 loss.
currently have with profits monthly direct debit  policy.
policy clearly states that after 5 years that policy can be encashed and any declared bonus dividends will be payable. however latest statement from SP refers only to policy held to final maturity.
I too wrote to them for information ( their email adds was a dummy) but like dumdum have heard nothing back yet. I suppose there is always the ombudsman if all come to all and the dont reply.


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## Right Said Fred (2 May 2003)

*Scotts Prov*

dumdum, joeysoap.

Talk to your Broker who sold you the policy for any information. Scot Prov only deal with brokers. The have a broker support centre with 10 highly trained staff but a customer service desk with only 3 staff. If you don't have a broker get one!! 

RSF


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## Denis (2 May 2003)

*Scot Prov*

Brendan

Equitable did not pay 'commission' (or so they say) and they still went belly up. 

You are way off the mark on the commission/profitability issue as I am about the above statement.

I think you are looking for a story that is not there. This 'journalist' thing must be going to your head : lol


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## Rodders (2 May 2003)

*Scot Prov*

Hi folks,

This is slightly off point but here goes.....

I'm thinking of buying a product or two from Royal Liver.  Given recent events re the above, has anybody got any advice on same?

Cheers,

Rodders.


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## Annoyed (3 May 2003)

*Rodders*

What has "the above" got to do with whether you buy a product from Royal Liver or not?

The closure of Scot Prov to new business has no effect on existing policyholders. Go talk to a broker who will give you all the advice you want because you look as if you need advice


Annoyed


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## Dogbert (4 May 2003)

*Quinn Life - PRSA*

Going back to Brendan's original post, it *is* interesting that Quinn Life haven't launched a PRSA - you'd have thought it was a product tailor-made for them in some ways.

I assume it's because they simply don't think they'll sell any (or many). They sold only a tiny number of SSIA's, another product you'd have thought was right up their street.

Anyone else got an inside track or any other ideas ?


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