ICMIF member Royal London, the UK’s largest life, pensions, and investment mutual, has announced this week that it has reached an agreement with Aegon UK to acquire its individual protection line of business, subject to court approval.
As a result of the acquisition, the life insurance, critical illness and income protection policies for over 400,000 customers will transfer to Royal London.
Barry O’Dwyer, Group Chief Executive, said: “We are delighted to be welcoming over 400,000 new protection customers and their advisers. Combined with over 900,000 existing customers who already trust Royal London to protect their families against life shocks, this transaction strengthens our position in the UK protection market. Our reputation for outstanding customer service means that customers and advisers will be reassured that they are in safe hands.
“The advised nature of Aegon’s individual protection customer base makes it a perfect strategic fit. We are strong champions of the adviser community and of impartial advice, and we look forward to supporting advisers through this transaction, making sure there is no disruption to their businesses or to their clients.”
Customers’ policies are expected to transfer to Royal London in 2024, following the completion of a court-approved Part VII transfer. In the interim period, Aegon UK will reinsure the portfolio to Royal London.
At this time, Royal London says, there is no immediate change for customers or their advisers. All servicing and claims will continue to be processed in the usual way. Royal London and Aegon will provide updates to customers and financial advisers as the acquisition progresses.
In its 2022 financial results announcement last month, Royal London reported that it had added a total of GBP 675m over the last two years to its long-standing customers’ policy values as a result of its closed with-profits fund consolidation programme, which is now complete.
The mutual insurer also announced that its customers will continue to share in the success of the organisation through a ProfitShare allocation of GBP 155 million.
