Standard jobs likely to go

THE board of Standard Life is moving towards making a firm recommendation for the insurer to float on the stock market.

The troubled mutual is likely to undergo a radical reshaping ahead of a float, including large-scale job losses and the sale or shutdown of marginal operations.

Proposals for a share listing, likely in two years' time, would have to win approval from the majority of members in a vote.

Industry analysts reckon the company could be valued at between £3bn and £5bn, triggering typical windfalls of £1,500 for 2.6 million policyholders. Standard has put in place deterrents to carpet-baggers.

Directors, led by chief executive Sandy Crombie, are due to update members on the findings of a wideranging strategic review at the annual meeting next month.

Advisers including consultants McKinsey and investment banks UBS and Lazard are crawling over the business.

Standard, which sells mainly through independent financial advisers, has already slashed 360 jobs from its direct sales force and insiders say the axe is hovering over survivors.

Executives will also be casting a beady eye around the Edinburgh headquarters with a view to streamlining the 7,500-strong workforce.

Despite recent speculation, Crombie is believed to be keen to hold on to Standard Life Bank, which recently moved into profit. He is also reluctant to part with the long- established Canadian arm.

Less assured is the fate of Standard's European businesses, including a small outfit in Spain, a recent start-up in France and a larger operation in Germany.

The review has from the outset been virtually certain to lead to a float which would boost Standard's battered capital in the wake of a damaging dispute with the Financial Services Authority over its solvency figures.