Stm Grp. Regulatory News (STM)

19 Mar 2008 07:01

STM Group PLC19 March 2008 Press Release 19 March 2008 STM Group Plc ("STM", "the Company" or "the Group") Launch of STM Life Assurance PCC PLC STM Group Plc (AIM:STM), the cross border financial services provider, is todaypleased to announce the launch of its wholly owned subsidiary, STM LifeAssurance PCC Plc ("STM Life"), which has been granted a licence by theGibraltar Financial Services Commission to write Class III, linked long termlife assurance business. Linked life assurance comprises contracts of insurance, both life and annuity,where the benefits are determined wholly or partly by reference to the value ofthe assets underlying the policy. STM Life has been structured as a protectedcell company, under Gibraltar's Protected Cell Companies Act 2001, so that theassets of each policy will, under Gibraltar law, be legally separated from theassets (and any liabilities) of all other insurance contracts that it entersinto. Gibraltar is part of the UK Member State for EU purposes (unlike the ChannelIslands and the Isle of Man) which means that STM Life will benefit from thefundamental freedom to provide its financial products and services to the 456million citizens of the EU's 25 Member States. STM Life will shortly beapplying to "passport" its services into a number of Member States, which offerfavourable tax treatment to insurance products, starting with the UK. Linked life policies are frequently funded by a single premium, which can bepaid in cash or by the transfer of an existing portfolio of stocks and shares.Such policies are frequently referred to in the financial press as "insurancewraps" or "insurance bonds". Acknowledging the increasingly diverse range ofassets which appeal to High Net Worth Individuals ("HNWIs"), including shares inprivate companies, real estate, participation in hedge funds, REITs and EIFs.STM Life will offer "open architecture" policies which can hold any assetconsidered suitable by STM Life's directors. STM Life will partner with a number of specialist financial advisers andinsurance and investment intermediaries in the UK (and in due course in other EUjurisdictions) to offer its insurance products to their clients. Commenting on the launch of STM Life, Tim Revill, Chief Executive Officer of STMGroup Plc, said: "This is a very exciting and timely development for the Group. Insurance products, "wraps" as they are often known, are becoming anincreasingly important and popular method of protecting and administering theassets of HNWIs, including those resident, but not domiciled in the UK and theiroffshore trustees and expatriates returning to the UK." Alan Kentish, CEO of STM Fidecs Insurance Management, which will provideadministration services to STM Life, said: "The launch of STM Life willdifferentiate the Group from most other CTSPs, who are not equipped to offertheir own life assurance products. We anticipate considerable earningpotential, with very low downside risk." - Ends - For further information, please contact:STM Group PlcTim Revill, Chief Executive Officer Tel: 00 350 51610tim.revill@stmgroupplc.im www.stmgroupplc.com Daniel Stewart & Company Plc Tel: +44 (0) 20 7776 6550Lindsay Mair / Stewart Dick www.danielstewart.co.uk Media enquiries:AbchurchHenry Harrison-Topham / Charlie Jack Tel: +44 (0) 20 7398 7706henry.ht@abchurch-group.com www.abchurch-group.com Notes to editors STM was formed in 2007 specifically to become a leading financial services groupoperating in the Corporate and Trustee Service Provider (CTSP) sector. TheCompany listed on the AIM market of the London Stock Exchange in March 2007.The traditional business of CTSPs is to administer and manage personal, familyand commercial assets and income streams in tax efficient jurisdictions. TheCompany's aim is to grow through acquiring and consolidating high qualityexisting CTSPs which offer complementary products and services and that operatein complementary tax efficient jurisdictions to those provided by STM's firstacquisition, the Gibraltar based CTSP, Fidecs Group Limited ("Fidecs"). Fidecs is the second largest financial services firm in Gibraltar and employsapproximately 90 people. It specialises in financial planning for both HighNet Worth individuals ("HNWI") moving to work, living or retiring overseas ormaking cross-border investments, and for entrepreneurial, predominantly,owner-managed businesses, expanding into or re-locating to other, frequentlylower tax, jurisdictions. It also includes an insurance management division,specialising in providing set up and management services to newly formedinsurance companies operating out of Gibraltar. In the maiden period from 1 February 2007 to 31 December 2007 (in which therewere 9 months of trading), STM Group reported turnover of £5.3 million with posttax profit of £1.65 million. In June and August 2007, STM acquired two Gibraltar based CTS providers, theAtlas Group of companies and Parliament Corporate Services Limited. These twoacquisitions further consolidated STM's leading position in Gibraltar.Parliament has an established client base which, as at 31 December 2007, wasmade up of 272 companies and 112 trusts and Atlas 65 companies and 30 trusts.In December 2007, STM made its first strategic acquisition within the ChannelIslands when it acquired Jersey-based Compagnie Fiduciaire Trustees Limitedwhich comprised 23 trusts, holding in some cases sizeable investment portfolios. The CTSP market is fragmented in nature, comprising a small number of very largeinternational financial services groups and a large number of relatively smalltrust and company management businesses regulated by, and operating out of, asingle jurisdiction. Further information on STM Group can be found at www.stmgroupplc.com This information is provided by RNS The company news service from the London Stock Exchange