Ifg Regulatory News (IFP)

Sale of IFG Ireland Businesses

28 August 2014

The Board of IFG Group plc ("IFG") is pleased to announce that it has signed an agreement for the sale of its Irish pension and advisory business to Willis Ireland, part of Willis Group Holdings. The business being sold principally trades as IFG Pensions, Investments & Advisory Services through the following companies:

· IFG Pensco Limited, a leading pensions consultancy and administration business

· Retirement Strategies Limited and IFG Private Clients Limited, both financial advisory companies

· Planlife Trustee Services Limited , a professional trustee company

· Trade Credit Brokers Limited, a trade credit insurance broker

The maximum consideration is €13.5 million (£10.8 million) consisting of an initial consideration of €11.5 million (£9.2 million) payable on completion; and up to €2 million (£1.6 million) in contingent deferred consideration, payable following the second anniversary of the sale dependent upon revenue of the new combined business over this period. The sale price shall be subject to an adjustment upon finalisation of the completion accounts. The sale is subject to certain conditions, including regulatory consent, and is expected to complete later this year.

Profit before tax for the businesses being sold for the first six months of 2014 was £0.1 million (€0.1 million). Gross profit increased from £0.1 million (H1, 2013) to £0.4 million (H1, 2014). The achievement of profitability in the last year follows planned investment in the business and reflected continuing improvement in its underlying performance. Gross assets as of 30 June 2014 were £13.7 million (€17.2 million).

Our General Insurance business in Ireland, which trades as ARB, is not included in the transaction announced above; however we are currently in discussions to sell IFG's interests in this business. Should an agreement be reached IFG will further update the market.

Gary Owens, CEO of the IFG Ireland segment, will join Willis to head up the combined pension and employee benefits business in Ireland and will resign from the Board of IFG Group plc. The Board expresses its thanks to Gary for his leadership of the business over the last seven years. Commenting on the agreement, Gary Owens said he was "pleased that Willis were attracted by the strength and depth of the IFG team, our independent award winning investment proposition and an industry leading technology platform. The whole team of IFG Ireland and I are looking forward to the opportunities in joining Willis and our clients will benefit from a globally recognised brand name and the resources to add further strength and depth to the overall service offering."

Paul McNamara, CEO of IFG Group, welcomed the agreement saying "The newly combined business, backed by the global scale and presence of Willis, represents a compelling opportunity for our colleagues and enhanced services for clients. This transaction is consistent with our strategy to focus on the continued growth and development of James Hay Partnership and Saunderson House. The sales proceeds will further strengthen our balance sheet and facilitate investment in these businesses. IFG is now a more sharply focused Group with well-positioned businesses and the resources to pursue increased growth in our core markets."

Enquires relating to this announcement should be directed to:

Paul McNamara, Group Chief Executive Tel: 00 353 1 275 2800

John Cotter, Group Finance Director Tel: 00 353 1 275 2800

Niamh Hore, Investor Relations & Corporate Development Tel: 00 353 1 275 2866

Media enquiries to:

Billy Murphy, Drury Communications Tel: +353 1 260 5000