The Board of Standard Life today confirmed that the insurer intends to recommend to members that the company demutualize and list on the London Stock Exchange.

Standard Life will be writing to its eligible members before the end of October asking them to confirm their policy and contact details to ensure they receive their demutualization entitlement.

Most eligible members would receive free shares in place of their membership.

Standard Life will seek members’ approval at a Special General Meeting expected to take place in May or June 2006. For demutualization and flotation to go ahead at least 75% of those who vote will need to vote in favour of the proposals.

The Board also announces that membership of the company will close effective, Oct. 18, 2005.

A new holding company, Standard Life plc, would own the Standard Life group on flotation and would be listed on the LSE. The actual date of flotation will be as soon as practicable after the SGM and will depend on a number of factors, including legal and regulatory processes and stock market conditions.

Members whose with profits policies mature on or after Oct. 18 October may be able to qualify for free shares. This would require members’ approval at the SGM and the board intends to propose an amendment to Standard Life’s regulations to enable this to happen.

Any member whose policy matures before 18 October will not be entitled to any free shares on the basis of that policy.

The proposals put to members will be assessed by the UK Financial Services Authority (FSA) and will be subject to the approval of the Court of Session in Scotland. The independent expert, Mike Arnold, will report to the Court of Session on the proposals. Various legal, regulatory and other requirements will also have to be met for demutualization and flotation to take place.

Commenting on the board’s announcement, Chairman Sir Brian Stewart said: “The Board continues to believe that demutualization and flotation is the best way forward and in the best interests of members, customers and the company.”

“If the proposals are supported by members, most eligible members will have the opportunity to receive free shares in place of their membership. However, it is too early to speculate on the value of these shares,” he added.

“Under the leadership of Sandy Crombie, we have made excellent progress since the strategic review of the business began in January 2004. There remains a lot of work to be done before our proposals can be put before members, but I believe Standard Life has an exciting and successful future. The proposed demutualization and flotation are key stepping stones in realizing our ambitions,” Stewart concluded.