Quilter has announced the sale of Quilter Life Assurance (QLA) to ReAssure Group has completed for £445m ($587m).
In addition, after allowing for costs and the capital impact, Quilter shareholders will receive a return of £375m following the sale. Quilter expects this to be excess capital.
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ReAssure believes the transaction will generate over £500m of surplus generation and this also includes around £200m of synergies.
Mark Hodges, chief executive officer of ReAssure, said: “I am delighted to welcome our new customers and colleagues to ReAssure. This transaction is further evidence of our value-creating acquisition track record providing excellent customer service, valued solutions for vendors and attractive returns to our shareholders.”
The deal began talks in August 2019. Under the terms of the contract, Quilter, erstwhile Old Mutual Wealth, would sell its heritage life and pensions division Old Mutual Wealth Life Assurance (Quilter Life Assurance) including subsidiary Old Mutual Wealth Pensions Trustees.
As a result of the deal, nearly 200,000 policies, £12bn ($14.5bn) of assets, along with 300 staff will be transferred to ReAssure.
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By GlobalDataIn June, Swiss Re confirmed that its UK subsidiary ReAssure Group is preparing to launch a $4.5bn initial public offering (IPO) to collect the required funds for expansion.
However, Swiss Re announced in July that it would abort the $4.5bn initial public offering (IPO) of its UK subsidiary ReAssure Group in response to the “heightened caution and weaker underlying demand” from large institutional investors.
The enhancements, which included new medical conditions, enhancements to payment conditions, improvements to children’s cover and clearer definitions, aimed to enable more insureds to file claims when they face difficult times.
Old Mutual Wealth said that the new enhancements also include “additional care benefit”, which enables patients to get an additional £50,000, or the benefit amount if lower, for the extra care they need, if they have met the requirements but still suffering from a long term illness.
Additionally, the company has launched an outcome-based claim for mental illness, under which the company will pay out for any mental illness that meets four criteria.
