The sale of Quilter International to Utmost Group was one of the biggest game changers in the cross-border life market.
In November 2021, Utmost Group completed the acquisition of Quilter’s international life business for a total cash consideration of around £480m ($554m, €556m).
The acquisition added approximately £24bn of assets under administration and 90,000 policies to the Utmost Group. As part of the deal, Quilter International merged with Utmost International’s operations in the Isle of Man, Ireland, Singapore, Hong Kong and the Dubai International Financial Centre.
Utmost said that the operational integration of the businesses would take around 18 months.
International Adviser spoke with Stephen Atkinson, global head of sales and marketing at Utmost International, to discuss the group’s next steps a year after the Quilter International deal.
Combining the businesses
Atkinson said: “From a sales and marketing perspective, the first part was to make sure that we have one combined salesforce, marketing team and proposition,” he said. “We did that fairly quickly, building on our experience with previous acquisitions and subsequent integrations in the past few years.
“We then assessed our combined proposition. With the deal, we inherited near carbon copies of existing products. We wanted to have a best-of-breed range across the various markets.
“We took some of the existing Utmost products and some of the existing Quilter products and, depending on the market, improved the functionality of them, with a focus on client outcomes.
“We are now through that process. There is some tidying up left to do on the products, but we are now focused on further product development.”
Further deals
The Quilter International deal has not deterred Utmost from looking at further acquisitions.
But this time Utmost may set its sights towards the UK.
“The Quilter International deal was quite chunky to absorb given its scale and global reach.” Atkinson added. “The group is well positioned for another acquisition, however it’s probably more likely in the UK rather than the international market.
“We have the resource, opportunity and the expertise. We’re quite attractive to the vendors because of our strong track record, for example completing the Quilter International deal in eight months.
“On balance, it’s more likely we will do deals in the UK. But if something came up in the international space at a decent price, I’m sure Paul [Thompson] and Ian [Maidens] will look at it.”
New ventures
Atkinson also discussed the group’s growth plans in terms of product development with the Scandinavian region presenting an opportunity for the life insurance giant.
He said: “We are assessing a potential new product for Finland and Sweden, then we have a full house of where we want to be in terms of products and distribution.
“Finland and Sweden are not huge markets in terms of potential client numbers, but in Sweden particularly, the attractions of life insurance for high net worth individuals are quite strong.
“Our solutions can add value in the high net worth markets, where individuals are investing in complex assets and managing succession issues. Additionally, in Finland we are getting a number of queries around portability because clients are nervous about macro issues connected to Russia.”
Asia
Another region on the mind of Utmost International is Asia.
It has become a key region for many wealth managers, private banks and asset managers over the last five years – and this is no different for Utmost.
Atkinson said: “If we get the strategy right in Asia, it presents a large and growing opportunity. Utmost has an existing footprint with offices in Singapore and Hong Kong, which helps our ventures into the high net worth space.
“With factors such as the introduction of Common Reporting Standards and ongoing discussions around worldwide taxation, individuals are far more aware of the need to do proper wealth planning.
“Utmost is well positioned in Asia, having inherited a good market positioning and strong adviser relationships via Quilter International. The market is changing fast with a growing client base focused on protecting and preserving their wealth and our group stands ready to adapt and change to clients’ needs.
“We have seen a shift towards some clients preferring to hold assets in Singapore. Our group has offices in both Hong Kong and Singapore; as such we can support clients whatever their preference in terms of jurisdiction.
“We are seeing increasing interest in Singapore as a financial centre. It has fast become a leading financial centre, both in Asia and globally.”
Future
Atkinson made a bold statement about its ambitions as he said “Utmost wants to be the leader in its chosen markets”.
“The group was incepted in 2013,” Atkinson said. “We are now a leading brand and very well known in the adviser community. Our aim is to continue to grow our status in the wider community of professional services such as lawyers and accountants.
“We are focused on building strong, sustainable relationships across adviser networks and private banks, to be able to best support our clients in the long term.”
