Statement re Scottish Widows
Lloyds TSB Group PLC
13 June 2000
LLOYDS TSB ANNOUNCES ESTIMATED COMPENSATION TO BE PAID FOR SCOTTISH WIDOWS
On 3 March 2000, Lloyds TSB Group plc completed the transfer of the business
of Scottish Widows' Fund and Life Assurance Society to its wholly owned
subsidiaries Scottish Widows plc and Scottish Widows Annuities Limited. The
value to Scottish Widows' members as at 3 March 2000 is now estimated to be
£7.3 billion. £5.8 billion represents the total compensation to be paid by
Lloyds TSB to qualifying members of Scottish Widows and £1.5 billion will, to
the extent not needed to meet contingencies relating to Scottish Widows'
pre-transfer business, be paid out from the With Profits Fund over time as
policyholder benefits to eligible with-profits members.
In November 1999 policyholders were advised that, based on the position as at
31 December 1998, the value would have been around £6.7 billion, including
total compensation from Lloyds TSB estimated at £5.4 billion. The primary
reason for the increase in the figures is the increase in the value of surplus
assets arising between 31 December 1998 and 3 March 2000.
Scottish Widows will offer individual UK qualifying members a number of
options from which to select their preferred form of compensation and will
shortly write to qualifying members to ask how they would prefer to receive
their compensation. The decision to offer these options is part of the reason
for the deferral of the expected payment date from June 2000, as previously
advised, to the second half of August 2000, when formal confirmation of the
total compensation will be advised.
There have been no other significant changes affecting the matters disclosed
in the previous announcement.
For further information:
Lloyds TSB Press Office
020 7626 1500
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