Transfer of Royal Liver Assurance Limited
to The Royal London Mutual Insurance Society Limited
UPDATE: 1 July 2011-06-30
Royal London confirms completion of Royal Liver transfer
Royal London, the UK’s largest mutual life and pensions company, has confirmed that, having received all the relevant regulatory approvals, the transfer of Royal Liver’s assets and liabilities to Royal London has been completed.
The transfer was approved by the Financial Services Authority under Section 86 of the Friendly Societies Act (1992).
Royal London has reached agreement with Royal Liver for the transfer of its business to Royal London. Royal Liver’s delegates – the elected representatives of Royal Liver’s Members – voted in favour of the transaction at Royal Liver’s Annual General Meeting on 12 May 2011.
Royal Liver is an incorporated friendly society and a mutual company. If the proposed transfer goes ahead it would bring around £3.0bn in additional assets under management to Royal London.
The Royal London Board believes the proposed transfer is a good opportunity to develop the Group further:
- like us, Royal Liver is a mutual insurer owned by its members and not external shareholders;
- we have structured the transaction to deliver additional value to Royal London members and with-profits policyholders, in return for providing security and stability to Royal Liver policyholders;
- we have a track record of completing such transfers successfully, with the previous acquisitions of United Assurance Group, Scottish Life and parts of the ex-Resolution businesses and assets.
Having considered the terms of the transaction the Royal London Board has concluded that, in its view, it is in the interests of the Royal London policyholders and members to proceed with the transfer.
If the proposed transfer goes ahead:
- Royal Liver will become a separate, closed with-profits sub-fund of Royal London and will be managed for the benefit of current Royal Liver policyholders;
- it is possible that, in extreme circumstances, the Royal Liver sub-fund might require financial support from the Royal London fund. We believe the likelihood of such support being needed is remote;
- Royal Liver policyholders will not become members of Royal London.
Before the proposed transfer can to go ahead it needs:
- approval by a number of regulatory bodies, including the UK Financial Services Authority and the Central Bank of Ireland;
- Irish competition clearance;
- confirmation from the Royal Courts of Jersey and Guernsey that they have sanctioned the local schemes of transfer.
The below documents are available by email on request:
- Independent Actuary Summary Report
- Summary of the Terms of the Transfer
- Actuarial Function Holder and With Profits Actuary Summary Report
If you have any further questions, please don’t hesitate to contact us. We’re available 8am to 6pm Monday to Friday, except bank holidays. Telephone: 08450 502020.