12 Nov 2012 07:00
Date: | 12 November 2012 |
On behalf of: | Charles Taylor plc ("Charles Taylor" or the "Company") |
Embargoed until: | 0700hrs |
Charles Taylor plc
Acquisition of Global Life Assurance Limited through LCLI
Charles Taylor plc announced today that LCL International Life Assurance Company Limited (LCLI), Charles Taylor's wholly owned Isle of Man-registered closed life business, has entered into an agreement to acquire Global Life Assurance Limited (GLA) from Pinnacle Company Limited.
GLA provides investment life insurance products and is closed to new business. The operations of GLA will be rationalised by transferring the GLA business into LCLI. Charles Taylor's life insurance services company, LCL Services (IOM) Ltd, has been insurance manager to GLA since 2006 and will continue to provide such services.
The initial consideration is £1.55m, met from cash available in LCLI. Deferred consideration payments of a maximum of approximately £0.9m are due to be paid over 3 years, if agreed policy persistency levels are met.
The gross assets of GLA (net of pre-completion dividends) are £69.4m based on August 2012 management accounts. It is intended that the GLA business will be transferred into LCLI which would enable a reserve release to be realised, subject to court approval. The business is expected to generate an IFRS profit of c. £0.1m in 2013.
David Marock, Group Chief Executive Officer, Charles Taylor said:
"Global Life policyholders will continue to enjoy high levels of service and, by merging the Global Life business into LCLI, we will be able to streamline management, delivering cost savings without compromising service. We expect the acquisition to be earnings enhancing and it has the potential for an early payback of our investment."
The acquisition is subject to regulatory approval by the Isle of Man Insurance and Pensions Authority. The business transfer into LCLI is subject to court approvals.
-ENDS-
Enquiries:
For further information: | |
Charles Taylor plc | www.ctplc.com |
David Marock, Group Chief Executive Officer | Via Redleaf Polhill |
Mike Lord, Group Communications Director | |
Redleaf Polhill | ct@redleafpolhill.com |
Emma Kane/ Rebecca Sanders-Hewett/ David Ison | 020 7566 6720 |
Notes to editors
About Charles Taylor plc
·; Charles Taylor plc, headquartered in London, is a leading international provider of professional services to clients in the global insurance market. The Group has been providing professional services to insurance clients since 1885 and today has 900 staff in 47 offices spread across 23 countries in the UK, the Americas, Asia Pacific, Europe and the Middle East.
·; The Group offers services across the whole insurance market, principally on a fee-based model and operates through three professional services businesses - Management, Adjusting and Insurance Support Services. Charles Taylor also has a Run-off business that owns insurance companies which are closed to new business.
·; LCL International Life Assurance Company Limited is a wholly owned subsidiary of Charles Taylor plc, based in the Isle of Man. It acquires and absorbs international life insurance companies which are closed to new business and closed books of international life policies.
Further information is available at www.ctplc.com
Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.