Canada Life has sold its UK individual protection business to Countrywide Assurance.
Approximately 47,000 customer policies will be transferred following court approval of the deal.
The announcement was made today (May 16) following the news in November that Canada Life would be leaving the UK’s individual protection market.
At the time, others in the protection space described Canada Life’s exit from the market as disappointing.
The withdrawal, which will see the loss of the firm’s fixed term cover life insurance and critical illness products, follows a handful of other exits from the market over the past decade.
Big names including Old Mutual, Scottish Provident, Bupa, and AXA have all closed their individual protection arms in the UK.
Today’s announcement from Canada Life stated that the group’s existing onshore individual protection customers’ policies are expected to be transferred to Countrywide Assurance in 2024.
Tim Stoves, Canada Life’s managing director added: “We’re proud to have found a good home for our onshore individual protection customers, and know we have chosen the right partner with Countrywide Assured plc, a subsidiary of Chesnara plc, due to their experience, high standards of customer support and focus on prioritising good customers outcomes.
“Our agreement will provide certainty for our customers, who will be assured that their policy will remain in safe hands, with all policy terms and conditions honoured as part of the proposed transfer.”
The group said it will continue to focus on its international protection business and its group protection offering, which currently supports 3mn employees.
Countrywide’s holding company, Chesnara, has an exclusive focus on taking over existing policies from other companies. It does not sell products to existing or new customers.
Canada Life has said it will continue to support its customers and honour existing contractual obligations, including the payment of claims in line with usual processes.
jane.matthews@ft.com
