Savers remain in dark over shortfalls

STANDARD Life's 1.2 million endowment mortgage savers will not learn of the latest slump in their policies' value until after the annual meeting next month.

Normally, Standard's endowment projection letters, showing how much payouts are likely to fall short of policyholders' mortgages, are posted early in March. Standard's endowment customers already face an average shortfall of £4,900.

This year's projections will show even greater shortfalls.

But Standard Life said: 'We categorically deny that we are trying to hold back bad news until after the AGM.'

The board, under new chief executive Sandy Crombie, is braced for a backlash at the annual meeting.

This follows a year that saw the exit of former boss Iain Lumsden, the forced £8 billion sale of part of its shareholding and an abrupt strategic U-turn that will probably result in the insurer's demutualisation.