Quilter has completed the sale of its wholly-owned life assurance subsidiary, bagging £425m for the transaction.
The heritage life and pensions division Quilter Life Assurance has been bought by ReAssure, a consolidator of closed book assets which focuses on managing legacy life insurance products.
ReAssure was itself recently bought by Phoenix Group, making it part of the largest life and pensions consolidator in Europe. This sale is expected to be completed by mid-2020.
Quilter announced it would sell the division earlier this year, with chief executive Paul Feeney saying the company's board intended to return a "meaningful proportion" of profits from the sale to shareholders.
A stock exchange announcement, published today (January 2), showed the sale had completed on December 31, 2019.
After allowing for costs and the capital impact of the transaction together with other expenses associated with the sale, Quilter reported the net surplus proceeds from the sale to be £375m, set to go to shareholders.
According to ReAssure the transaction will create a £500m surplus, including about £200m of cost savings as the companies integrate.
Mark Hodges, chief executive of ReAssure, said: "I am delighted to welcome our new customers and colleagues to ReAssure.
"This transaction is further evidence of our value-creating acquisition track record providing excellent customer service, valued solutions for vendors and attractive returns to our shareholders."
imogen.tew@ft.com
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