IFG Group, James Hay’s parent company, has announced today (28 August) that is has signed an agreement for the sale of its Irish pension administration and advisory business to Willis Ireland for a maximum cash consideration of £10.8m.
The Dublin-listed group also announced in interim results that “it is in advanced discussions in relation to the disposal of the general insurance businesses ARB and Insure4Less, the remaining businesses in the Irish segment”.
The Irish pension administration and advisory deal follows the sale of three independent advice businesses within the IFG Financial Services umbrella earlier this year to Ascot Lloyd.
IFG Financial Services Limited, John Siddalls Limited and Berkeley Jacobs Limited are all set to, or are currently merging, with Wokingham-based Ascot Lloyd’s existing IFA business.
In the first six months of 2014, IFG Group’s Irish businesses recorded and operating profit of £0.5m. It owns Sipp provider James Hay Partnership and hourly-charging financial advice business Saunderson House.
James Hay saw Sipp sales grow in the first half of 2014 compared to the same period a year ago, with net growth in the book of 70 per cent. However, ongoing investments and a drop in client cash account interest income contributed to a fall in profit from £3.4m to £2.5m.
Yesterday, Saunderson House has reported profits up 6 per cent to a little more than £4m for the 12 months post-Retail Distribution Review implementation to 31 December 2013, up from £3.8m the year before.
The firm said in its interim statement on its overall group financing: “The completion of the sale of IFG Financial Services and the Irish pension administration and advisory businesses will materially increase cash balances in the second half of the year.”
