Mergers and acquisitions  

Aviva buys Succession Wealth for £385mn

Aviva buys Succession Wealth for £385mn

Aviva has bought national IFA Succession Wealth in a deal worth up to £385mn, subject to regulatory approval.

In a stock market update today (March 2), Aviva said the deal “significantly enhances” its presence in the wealth market as more people seek advice for their retirement and savings options. 

The company said through Succession Wealth, Aviva will be able to offer advice to its approximately six million of its customers. Of these, four million are workplace pension customers with £96bn assets under management, and approximately two million individual pensions and savings customers with £139bn Aum.

Aviva will focus on those customers who do not currently have an adviser.

Amanda Blanc, group chief executive officer of Aviva, said: "The acquisition of Succession Wealth boosts Aviva's presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva's ability to offer high quality financial advice to millions of our customers."

Succession Wealth has approximately 200 planners, advising on £9.5bn assets from 19,000 clients throughout the UK. 

In the announcement, Aviva confirmed that Succession Wealth will continue to operate as a separately regulated, independent, financial advice firm and will continue to use the Succession Wealth brand. 

Succession’s chief executive officer James Stevenson will continue to lead the business, Aviva said.

Doug Brown, CEO of Aviva UK and Ireland Life, said: “We are excited to partner with the management team at Succession Wealth. They have built a great business over the years, and I am confident that Aviva's scale, resources, capabilities and shared vision will enable Succession Wealth to further expand its leading client and planner proposition in the UK's attractive wealth market. 

“This acquisition will broaden our advice offering and will help our existing customers currently without an adviser to better secure their financial future."

The firm said the addition of an advice offering will allow Aviva to support its customers as they go through critical life decisions, helping to retain more of the £6bn of pension and heritage assets that leave to be invested with competitors each year. 

The purchase is being funded by cash from Aviva's “strong capital position” and is expected to deliver a “double digit return” on invested capital in the medium term. 

The firm said it expects the estimated 2022 Ebitda to be around £24mn.

Stevenson said: "We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don't have an adviser. 

“The demand for financial advice across the entire wealth spectrum has never been greater, and the opportunity to combine Succession Wealth's holistic financial planning expertise, with the capabilities and customer reach of Aviva is hugely exciting. 

“The Succession Wealth brand and our core independent advice proposition is fundamental in providing ongoing stability and reassurance to our existing clients and our people as we embark on this new journey as part of Aviva."