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Standard Life's PI insurers back out of £100m payout battle
by Jun Merrett on Jan 14, 2013 at 15:59
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 unsuccessful appeal 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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