Standard Life sues 11 insurers for £100m over Sterling fund losses

Standard Life is suing 11 insurers for £100 million on the basis that the policies they were sold should have covered the losses incurred on the asset-backed securities held in its Sterling fund.

The Edinburgh-based firm has filed court papers demanding professional indemnity insurers cover the £100 million the provider injected into the pension fund in 2009 after it was hit by losses, according to Bloomberg.

The fund lost 5% of its value in early 2009 due to its holdings in asset-backed securities, despite being marketed as a 'cash' fund.

The losses sparked outrage among advisers and investors, who said marketing material had been misleading.

Standard bowed to pressure by injecting cash into the fund, and last year was fined £2.45 million by the Financial Services Authority, which said it had misled investors.

Former Standard Life chief executive Sandy Crombie (pictured) admitted in court yesterday marketing literature for the fund had been 'hopelessly inadequate'.