"The Royals" in Uk Merger Talks

ROYAL LONDON + ROYAL LIVER Insurance Compare Broker Only          ~ Life Insurance & Critical Illness Deals            On-line >15 secs

UK Life Insurers in possible Merger talks  5/2007

Royal London and Royal Liver are two Uk Life Insurance Providers both in talks 5/2007 currently to create a possible business merger according to BBC News website. They say this merger could lead to a group comprising nearly 5 million members and about £35 billion in funds under management. Discussions are currently at a very early stage and there can be no certainty that they will progress. In any event, it is likely to take time for them both to consider fully the merits of any combination and no further announcement can be expected until such consideration has been undertaken.

+     = "The Royal Family" ?

Royal London & Royal Liver are both more than 150-years-old

Royal Liver was set up 157 years ago by a small group of working men from Liverpool "to provide for the decent interment of deceased members". Today it boasts 1.7 million members, 2,180 employees in Britain and £3.7bn of assets under management, and has its headquarters in the Royal Liver Building, one of Liverpool's most famous landmarks. It sells life insurance, pensions, Isas and insurance. Royal London is significantly larger & is Britain's biggest mutual insurer, with reportedly almost £32bn in funds under management. 

           Royal London includes Bright Grey & Scottish Life      

Possible Windfalls for With Profits Policies ?

 The announcement has raised hopes of windfalls of perhaps several hundred pounds apiece for eligible Royal Liver members holding with-profits policies - but that would involve the firm ditching its member-owned status. In its own statement recently, Royal Liver said its board "remains committed to mutuality". In 2001, Royal London acquired pension specialist firm Scottish Life, which demutualised, triggering cash windfalls of £500 to members, plus extra bonuses added to people's policies. But the two Life Insurance Providers indicated that a repeat of this is unlikely.
"It is by no means certain that there would be a windfall," said Royal London. If Royal Liver decides it wants to stay member-owned, then a "mutual-to-mutual" combination would be possible, which would not involve any payments to members. Asked about windfalls, one industry source said: "I wouldn't get your hopes up."

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