8 Jan 2015 13:19
Date: 8 January 2015
On behalf of: Charles Taylor plc ("Charles Taylor" or the "Company")
For immediate release
Charles Taylor plc
Acquisition of Scottish Widows International Limited
Charles Taylor plc announces today it has agreed for its subsidiary, Metrowise Limited, to acquire Scottish Widows International Limited ("SWIL"), a Jersey life insurer in run-off, from Scottish Widows plc. SWIL provides unit-linked life insurance policies and portfolio bonds to individual investors.
The acquisition is part of Charles Taylor's strategy to make tactical acquisitions in the international life insurance sector to grow its life insurance business in the Isle of Man and generate cash releases for the Company.
It is intended that SWIL will be re-domiciled to the Isle of Man following the acquisition and that its policies will subsequently be transferred into Charles Taylor's wholly owned Isle of Man life insurance subsidiary LCL International Life Assurance Company Limited ("LCLI"), subject to court approval.
The initial consideration is £2.0m, to be met from existing cash resources. Subsequent payments of £3.0m will be made after re-domiciliation and £7.5m payable following the long term business transfer, or after 18 months at the latest. The total consideration will be £12.5m. The gross assets of SWIL were £95m and net assets were £16m as at 30th June 2014. Adjusted profits were -£0.1m in 2013. The transaction is expected to be earnings enhancing, after transaction costs and has the potential to generate cash releases in the medium term.
The acquisition is subject to regulatory approval by The Jersey Financial Services Commission.
David Marock, Group Chief Executive Officer, Charles Taylor said:
"This agreement to acquire SWIL follows our recent purchase of Nordea Life and Pensions. It demonstrates our commitment to grow our life insurance business in the Isle of Man. Over the last four years we have made four life insurance company acquisitions.
"Charles Taylor has administered SWIL's policies for the last eight years. This means that policyholders will experience a seamless change of ownership and will continue to enjoy the same excellent levels of service.
"By merging the business into Charles Taylor's life insurer, we will be able to deliver further efficiencies without compromising service. We expect the acquisition to be earnings enhancing and generate an early payback of our investment."
-ENDS-
For further information: | |
Charles Taylor plc | |
David Marock, Group Chief Executive Officer | |
Mike Lord, Group Communications Director
| Via Redleaf Polhill |
Redleaf Polhill | ct@redleafpr.com |
Rebecca Sanders-Hewett Charlie Geller David Ison
| 020 7382 4730 |
Notes to editors
Charles Taylor plc is a leading provider of professional services to clients across the global insurance market. The Group has been providing services since 1884 and today employs over 1,000 staff in 60 offices spread across 25 countries in the UK, the Americas, Asia Pacific, Europe and the Middle East.
The Group offers services, principally on a fee-based model and operates through three businesses - Management, Adjusting and Insurance Support Services. Charles Taylor also owns insurers, creating value through select acquisitions and operational efficiency.
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.