Glasgow based financial service provider Scottish Friendly has announced their takeover of a substantial block of life insurance policies and pension plans currently held by Canada Life.
As first reported by BBC News Scotland, the deal will see Scottish Friendly gain over 130,000 new memberships, as the acquisition increases their membership levels from 520,000 to around 700,000.
With a focus on providing a UK-centric pension service, the Scottish company is taking this new deal as a positive not just for members, but for the company as a whole. With the increase in members, Scottish Friendly is expected to double its level of assets. It is estimated that this block will see the company managing over £5bn for members across the UK.
While the deal focusses mainly on pensions, the Glasgow based mutual will also take on existing estate planning and life insurance policies previously controlled by Canada Life UK. Initially, the company had expressed an interest in acquiring a comprehensive level of Canada Life UK’s services before undertaking an in-depth review which resulted in a competitive tender, focussing on endowments, whole-of-life policies, protection policies and investment bonds.
A Deal For A Growing Company
Talking to The Scotsman Newspaper, Scottish Friendly Chairman Jim Galbraith has noted that this new deal is “a landmark acquisition” that will see the company grow in line with their new strategy.
Taking about the deal, Galbraith commented how the new deals “forms part of our three-pronged strategy of organic growth, business process outsourcing for partners and mergers and consolidation” Galbraith also noted how this deal would help Scottish Friendly to deliver “the strongest possible growth and customer care for our members.”
Canada Life UK also sees the deal as something that will have increased benefits for members. Richard Priestley, managing director and executive director of the insurance division, commented how “Scottish Friendly has a great reputation in this area which gives us confidence that customers will be in good hands”.
Meeting Demand In The UK
This deal also reflects the growing demand for investment opportunities in the UK, as investments including ISAs have increased in popularity. Scottish Friendly has noted that sales of ISAs are up 27 percent for the company this year as users come to the provider via digital and direct marketing channels.
About Scottish Friendly
Scottish Friendly is a UK based mutual and investments organisation, providing a range of investment solutions for customers across Scotland and the rest of the UK. It is the largest provider of its kind in Scotland with assets over £2.8bn (soon to be £5bn) and over 1 million policyholders.
The company has been based in Glasgow since 1862 and is comprised of three wholly-owned subsidiaries which specialise in asset management, insurance services and investment funds.
Additional information about the company can be found at scottishfriendly.co.uk
Company Name: Scottish Friendly
Contact Person: Media Relations
Email: Send Email
Phone: 0330 135 9539
Country: United Kingdom