Royal London has added Police Mutual, which specialises in insurance for the police and armed forces, to its business.
According to the firm, the deal received unanimous support from Police Mutual’s members back in June and will add £740m assets under management as well as 218,000 members and 284,000 policies to the insurer's books.
Royal London chief executive Barry O’Dwyer said: “Royal London and Police Mutual have complementary values and culture. Both are mutual and are committed to delivering the best value for their customers and members.
“Police Mutual plays a vital role in providing financial services and products to police officers and the armed forces.
“We are pleased to be able to provide the company with a secure future and look forward to working with Police Mutual colleagues.”
Back in March 2016, the Financial Conduct Authority launched a review into closed book life companies after it found a lack of transparency around the fees they charged customers.
At the time six well-known businesses, including Police Mutual, faced enforcement investigations into their behaviour on charges following a thematic review by the FCA of 11 firms.
In September 2017, the regulator dropped its investigation into Police Mutual with no further action needed but continued its review into the other five firms.
Earlier this week (September 28) reports emerged that Royal London is looking to take over LV to create a large-scale mutual.
The merger of the pensions, life insurance and asset management businesses would create a business with more than 10m customers.
While LV has not confirmed it is specifically in talks with Royal London, it has said it is in merger talks with a number of companies.
On the same day, Royal London entered the equity release market through a partnership with later life mortgage adviser Responsible Life.
The mutual’s later life lending service will provide customers with access to an independent advice service, operated by Responsible Life, covering equity release, retirement interest only (RIO) and retirement mortgages.
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