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Standard Life's PI insurers back out of £100m payout battle

Standard Life's PI insurers back out of £100m payout battle

Standard Life's professional indemnity (PI) insurers have dropped their fight against covering the cost of the insurer's £100m payout to investors in its Sterling fund.

Following an l of the initial court decision in Standard Life's favour, the PI insurers will not seek to appeal to the Supreme Court.

In February 2012, Standard Life won its £100 million claim against its insurers, who then appealed the decision. However, this was rejected by the Court of Appeal in December.

The £2.2 billion Standard Life Sterling fund was marketed by the company as a 'cash' fund despite investing in asset-backed securities which caused the fun to lose 5% of its values during troubled markets in 2009.

Standard Life then injected £100 million into the fund to reverse the drop in value but was later fined £2.45 million by the Financial Services Authority over misleading investors.

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