Royal London, the UK’s largest life, pensions and investment mutual is set to acquire the individual protection book of Aegon UK.
Some 400,000 Aegon customers will see their life insurance, critical illness and income protection policies transferred to Royal London as a result of the sale, which is subject to court approval.
The move will see Royal London expand its protection customer base to 1.3mn.
Commenting on the purchase, Royal London’s group chief executive Barry O’Dwyer said the advised nature of Aegon’s individual protection customer base makes it a “perfect strategic fit”.
“We are strong champions of the adviser community and of impartial advice, and we look forward to supporting advisers through this transaction, making sure there is no disruption to their businesses or to their clients,” O’Dwyer said.
The policies are expected to be transferred to Royal London in 2024 with Aegon UK reinsuring the portfolio to Royal London in the interim period.
“There is no immediate change for customers or their advisers. All servicing and claims will continue to be processed in the usual way. Royal London and Aegon will provide updates to customers and financial advisers as the acquisition progresses,” O’Dwyer added.
The portfolio of high-net worth individual customers, that was sold via independent financial advisers, will close to new business today (April 4).
jane.matthews@ft.com
