The huge proposed float of UK-based insurance and investment group Standard Life is set to be reduced in value when the firm sets its target price, reports suggest.

Standard Life set an initial target float price of between 240 and 290 pence per share – valuing the company at between GBP4.8 billion and GBP5.5 billion – back in April. Since then, however, the equity markets have plummeted, with insurance stocks having as much as 10% wiped off their value.

In light of this bear market, Standard Life is set to readjust its valuation by a similar proportion, media reports claim. This would value the company at around GBP4.5-GBP5 billion, and reduce the average payout to policyholders from GBP1,700 to GBP1,500.

Standard Life recently won an overwhelming mandate from policyholders to end its mutual structure and float on the London exchange.