Charles Taylor PLC Acquisition of Scottish Widows International (6779B)
January 08 2015 - 8:19AM
UK Regulatory
TIDMCTR
RNS Number : 6779B
Charles Taylor PLC
08 January 2015
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 GBP2.0m, to be met from existing
cash resources. Subsequent payments of GBP3.0m will be made after
re-domiciliation and GBP7.5m payable following the long term
business transfer, or after 18 months at the latest. The total
consideration will be GBP12.5m. The gross assets of SWIL were
GBP95m and net assets were GBP16m as at 30(th) June 2014. Adjusted
profits were -GBP0.1m 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQPKFDDNBKDODK
Charles Taylor (LSE:CTR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Charles Taylor (LSE:CTR)
Historical Stock Chart
From Apr 2023 to Apr 2024