Royal London to become one of UK’s top three protection providers
Friday, 1 August 2008
Royal London, the UK's largest mutual life and pensions company, has announced a major milestone in its acquisition of various assets and businesses from Pearl Group. Today, Royal London has completed the acquisition of Scottish Provident's new business capabilities (in respect of individual life protection business) and of Phoenix Life Assurance Limited (formerly Abbey National Life, the products of which are distributed through Abbey's national branch network).
The in-force protection business still to be acquired by Royal London will be transferred by means of schemes under Part VII of FSMA 2000. It is expected that such schemes will complete by the end of 2008.
Bringing these businesses into the Group, alongside Royal London's successful specialist protection brand, Bright Grey, is expected to result in Royal London becoming one of the top three providers of individual life protection insurance in the UK.
Mike Yardley, Group Chief Executive of Royal London, said:
"We have now reached an important landmark in the implementation of Royal London's strategic plans in the protection market. Having three specialist businesses, each with a very strong proposition and successful track record, enables us to significantly increase our presence in the UK protection market.
"Scottish Provident and Phoenix Life Assurance Limited (PLAL) will bring around 1.25 million additional policyholders to Royal London Group. This will increase our total customer base to well over 4 million people of which over 1.1 million have life protection plans.
"Between them, the three protection businesses recorded total new annual premiums of almost £90 million in 2007, giving a combined share of over 10% of the individual life protection market.
"A further example of our increased presence is that, in 2007, policyholders received around £120 million as a result of critical illness claims paid out by Scottish Provident, PLAL and Bright Grey."
Within the intermediary marketplace, as previously announced, Bright Grey and Scottish Provident will continue to operate as separate brands. In total, these two businesses secured over 18% of individual protection new business through intermediaries in 2007, which would have ranked as one of the top two providers. Both Scottish Provident and Bright Grey have their own executive team which will be responsible for developing and delivering business plans to secure profitable growth for Royal London. The two executive teams will report to John Deane, Chief Executive of Royal London's Intermediary Division.
Mike Yardley added:
"We believe that having both Bright Grey and Scottish Provident within the Group, each with its particular strengths, offers IFAs a valuable breadth of choice and access to specialist support.
"We are very pleased to welcome a talented and motivated group of people to Royal London Group and I'm sure they will contribute very positively to the Group's continuing success."
- ENDS -
For further information please contact:
Royal London
Alasdair Buchanan
Group Head of Communications
Tel: 0131 456 7133
Mobile: 07919 170 413
Polhill Communications
Jenette Greenwood
Tel:0207 655 0530
John Coles
Tel: 07836 273 660
Editor's Notes:
1. The main businesses and assets Royal London has acquired, or will be acquiring, from Pearl Group include:
- the majority of the in-force protection business from Scottish Provident and Scottish Mutual Assurance;
- Phoenix Life Assurance Limited, formerly Abbey National Life, the products of which are distributed through Abbey's national branch network;
- the new business operations of the companies mentioned above, other than with respect to the non-protection products of Scottish Provident and Scottish Mutual Assurance and increments to certain protection product lines; and
- the right to provide or procure the provision of all investment management services of the assets described above.
On 3 June 2008, Royal London completed the transfer from Pearl of Scottish Provident International Life Assurance, a provider of life products and investment services which is based in the Isle of Man.
2. The in-force protection business still to be acquired by Royal London will be transferred by means of schemes under Part VII of FSMA 2000.It is expected that such schemes will complete by the end of 2008.
3. Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
- Scottish Life – UK pensions market
- Bright Grey – UK protection market
- Scottish Provident -- UK protection market
- Phoenix Life Assurance Limited – provides life, investment and pensions products to Abbey's national branch network
- Scottish Life International – offshore investment markets
- Scottish Provident International – offshore investment markets
- RLAM – fund management
- RLAS – life and pensions administration
- Fundsdirect / Ascentric – funds supermarket; Wrap Platform
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £32.4 billion. Group businesses serve around three million customers and employ 2,750 people (figures quoted are as at 30 June 2008).