Details of the proposed link-up were posted to Scottish Equitable policyholders on Friday. There are about 650,000 policyholders altogether, about half of whom have with-profit policies.
They are due to receive a special bonuses worth a total of pounds 35m, though the exact amount due to each policyholder depends on the type of policy and the length of time it has been running. Annual and monthly premium endowment and pension plans will receive an amount equivalent to 5 per cent of bonuses already earned, while single premium policies will receive 10 per cent of existing bonuses.
Bill Stewart, marketing director of Scottish Equitable, said that the value of a 20-year, pounds 25-a-month endowment policy maturing now would have been boosted by pounds 800 as a result of the bonus.
A 10-year, pounds 50 a month policy would have had its maturity value increased by pounds 250.
Scottish Equitable policyholders are now being asked to vote on the proposal, either by proxy or at a special general meeting to be held at 11 am on 30 June at the Church of Scotland Assembly Hall, Mound Place, Edinburgh.Reuse content