On 3 February 2017, LCCG signed an agreement with Reliance Mutual Insurance Society Limited (“Reliance Mutual”) under which it is proposed that Reliance Mutual will be demutualised and all of its business transferred to Reliance Life Limited, a newly formed and authorised UK Life Company established by LCCG. The proposed transaction would represent LCCG’s first acquisition in the UK and is expected to form the platform for further acquisitions of traditional books of life business in the UK.
LCCG believes that all stakeholders (customers, employees, regulators and capital providers) in sub-scale life companies are better served as part of a specialist vehicle with an active and growing franchise.
The benefits of our approach include:
- Sound policyholder management with the highest standards of TCF (treating customers fairly)
- An amalgamation of life portfolios, offering greater opportunity for expense management and protection of customers from the dis-economies of limited scale, than stand-alone.
- A clearer and more engaging path for high calibre management and staff than sub-scale businesses can normally provide.
- A flexible and pragmatic approach to new business opportunities.
- A clean exit for vendors.
- Prudent capital management.
- A long term holder and manager of assets.
Reliance Mutual has 200,000 policies and manages assets of £1.9bn, from its office in Tunbridge Wells, Kent. The transaction is expected to close by the end of the first quarter of 2018.
We have been making arrangements for the legal transfer of Reliance Mutual’s business to a subsidiary of LCCG according to the process set out in the Financial Services and Markets Act 2000. You can find out more about the legal transfer process and the General Meeting of Reliance Mutual’s members that will take place on 14 December 2017 to approve the transfer by clicking here.