Blog – McCarthy & Associates – Galway Talks, 18/09/2014

moneyIssue:  60,000 Irish Shareholders of Standard Life to receive estimated €1,000 pay out.

Comment:  Standard Life recently announced the sale of their Canadian business and as a result will be redistributing the proceeds to their shareholders.  It is estimated that there are around 60,000 Standard Shareholders in Ireland and they could receive in the region of €1,000 each, depending on how many shares they own. 

It will become clear between now and Christmas the actual level of payout they will receive.

Issue:  Evidence shows that banks are reluctant to agree to insolvency deals.

Comment:  When the Personal Insolvency Bill was introduced it was flawed in a number of ways. The process requires the agreement of both the lender and the borrower before it can proceed.  It has become very clear that a number of banks are refusing to enter this process and some have made a policy decision that they will not do so under any circumstances.

A number cases have come to light recently, where people have opted for Bankruptcy instead and as a result the bank, in those situations, have lost far more than they would have otherwise, if the Personal Insolvency process had been entered into.

Issue:  Laya Healthcare launches cut price life cover.

Comment:  This is a cheap policy which Laya recently launched and can be accessed through their website.  However, looking at the various categories of people who can apply it is clear that there is a limitation on the level of cover they will provide and also that the premiums are really only competitive for people in their 20’s and 30’s.

Laya’s entry into the market could lead to reduced premiums from the other life companies.