Standard Life Assurance Co. today announced the appointment a new CEO, and a strategic review following the conclusion of talks with U.K. regulators concerning its’ financial reporting.

The insurer has appointed Sandy Crombie as group chief executive, replacing Iain Lumsden, immediately. Lumsden is retiring after 36 years of service. Crombie has been CEO of Standard Life Investments since the company was formed in 1998 in order to create a global investment operation. Under his leadership, SLI has seen a three-fold increase in its third party assets under management and an increase in total funds under management from £61.1 billion to £86.5 billion during a period of mainly falling stock markets.

The company has operations in the U.K., Canada, Ireland, Germany, Austria, Spain, India and Hong Kong and mainland China.

“We are fortunate to have someone of the calibre and reputation of Sandy Crombie to replace Iain and lead the company through the challenging period ahead,” said Sir Brian Stewart, chairman of Standard Life, in a news release.

“Constructive discussions” between the insurer and the U.K.’s Financial Services Authority regarding its financial position have concluded. Standard Life, while reaffirming that its financial position is very strong in relative and absolute terms, said it will commission a strategic review in the light of changes in industry and regulatory environment.

“Standard Life remains financially strong, with a great brand, low costs, outstanding products and superb customer service. There are tremendous growth opportunities for us. However, we have to recognize that the world is changing and this is why the board has commissioned a strategic review to examine how we should best respond to this changing industry and regulatory environment,” Stewart said.

It is expected that preliminary conclusions will be available in time for the annual general meeting on April 6, and that the review would be completed by the summer.

Standard Life says options for altering the capital structure of the firm include demutualization of the business with a view to seeking a stock exchange listing.

News release
http://www.standardlife.com/news.php?id_link=52