CompaniesJul 7 2015

Aviva increases stake in Brewin Dolphin

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Aviva increases stake in Brewin Dolphin

Aviva has increased its stake in Brewin Dolphin by purchasing 2.9m shares as the broker comes to the end of restructuring.

A spokesman for Aviva Investors confirmed the latest purchase of shares was on behalf of Aviva Life and Pensions UK.

Up until May 2014 Aviva owned less than 3 per cent of Brewin Dolphin but now it owns a 4.38 per cent stake.

Aviva’s increased stake in Brewin Dolphin less than a month after the adviser’s management confirmed they are entering the final stages of a restructuring process.

Speaking to sister newspaper Financial Adviser, David Nicol, chief executive of Brewin Dolphin, said the restructure, which began in 2012, was focusing on improving client advice and investment management processes.

He said: “Against the backdrop of the ongoing transformation of the group, financial performance in the first half was good.

“The benefits of the more focused and efficient business emerging from the business transformation helped maintain profit growth, with the adjusted profit before tax margin increasing further to 22.3 per cent.”

Total discretionary funds under management stood at £26.2bn, up from £24bn at the end of 2014.

Meanwhile, profit before tax stood at £33m at the end of the first half of the year, compared to £30m during the same period in 2014.

The deal follows yesterday’s news that Aviva and Friends Life had offered Sesame a combined £45m to cover adviser liabilities.

Aviva, which bought Sesame’s previous parent Friends Life earlier this year, offered Sesame £25m to cover liabilities they may struggle to meet from their own coffers, which have been hit by a series of regulatory fines in recent years.

Friends Life has also promised a further £20m to fund the costs of past business reviews and restructuring of the business.

emma.hughes@ft.com