Insurance company Standard Life has rejected a shareholder's suggestion to set aside GBP100 million of its profits every year for its with-profits fund, has reported.

The suggestion was made by a shareholder, Alastair McClelland, at the company’s annual general meeting.

Gerry Grimstone, chairman of Standard Life, said that the profits belonged to a new group of investors and the problems with the with-profits policies came from the company’s mutual past. quoted Mr Grimstone as saying: This was new money coming into the company. Not a penny of that was old money. They (investors) expect a return on that money. That’s the money we are using to build the company.

Sandy Crombie, CEO of Standard Life, said that the 10-year fund for with-profits mortgages and pensions was separate from shareholders’ funds.