Scottish Friendly near to M&GM deal

Scottish Friendly near to M&GM deal

Plans for Scottish Friendly Assurance to take over fellow financial services mutual Marine & General Mutual are in their final stages.

Neil Lovatt, sales and marketing director for Scottish Friendly, said the boards of both organisations had agreed to a planned takeover of M&GM.

Mr Lovatt said the planned acquisition, which will be subject to regulatory approval, would provide an opportunity for the Glasgow-based mutual to offer services not previously available to M&GM customers in such areas as Isas.

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He added that he expected the deal to complete in the middle of this year. It would be the largest takeover carried out by Scottish Friendly, doubling its assets to approximately £2bn.

Scottish Friendly currently has approximately 400,000 members.

M&GM is the oldest active registered company in the UK, having first come into existence as the Marine and General Mutual Life Assurance Society in 1852.

Adviser view

Mel Kenny, adviser for London-based Radcliffe & Newlands, said: “With mutuals it is a slow game of chess whereby they gather greater economies of scale over the years. But this is a significant buy.”