Lloyds made the announcement today as it published plans to enter the UK annuity and protection market as part of a new “intermediary strategy”. The strategy is as a result of a review directed by Toby Strauss, Lloyd’s group director for insurance, into how the company can expand within its current core markets of pensions, protection and investments.
As part of this review, Strauss recommended a withdrawal from the offshore bond market and CMI will close to new business from 30 March 2012.
In a statement Scottish Widows, of which CMI is a subsidiary, said: “Whilst CMI has historically been a leading player in offshore bonds, we have recently seen falls in new business levels as a result of intense competition. We have carefully considered our position in this market and concluded that we should focus on other core business areas.”
The company added that it remains committed to supporting its existing customers.
As a result of CMI’s closure, it is expected that 24 “roles” will be affected of the total Isle of Man workforce of 160. Scottish Widows said “anticipated job losses given normal levels of colleague turnover” should mean only 10 will be made redundant. It added that affected staff had been informed today (Tuesday 7 Feb).