Scottish Life Policholders Nearly Unanimous To Demutualize

An overwhelming 98 percent of the policyholders of Scottish Life voted in person or by proxy at the society’s annual general meeting in Edinburgh to abandon the mutual format, and become a public company. The decision clears the way for the completion of the company’s merger plan with Royal London Mutual Insurance.

The ever thrifty Scottish policyholders were no doubt swayed by Royal London’s commitment to add an average £3500 ($5000) worth of benefits to their policies, while some 220,000 holders will receive checks for £500 ($715). The total benefit package will top £1billion ($1.425 billion).

The merger couldn’t have been completed without the demutualization accord. Upon its completion – it still must obtain legal approval – Royal London/Scottish Life will become the second largest mutual insurer in the U.K., behind only Standard Life.