Article: 335m pound loan notes go to Widows members

SCOTTISH WIDOWS, the Edinburgh life and pensions giant, has paid out GBP 335 million in the first round of loan notes to be redeemed for windfalls arising from its takeover by Lloyds TSB last year.

In total, Scottish Widows had GBP 5.8 billion to distribute in windfalls to 1.67 million members from the sale. All members received a fixed windfall of GBP 500 and 955,000 received additional variable windfalls, averaging GBP 5700, because they held with- profits policies.

Around 67,000 policyholders expecting larger figures elected to take their windfalls as loan notes last year to defer capital ...

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