Two Isle of Man life companies look set to merge, following an announcement that Utmost Group has entered into an agreement to acquire Quilter International.
The deal is subject to regulatory approval and will see Quilter receive roughly £483m ($664.9m, €566.9m) in cash assuming completion on 31 December 2021.
The plan is to fold Quilter International into Utmost international, to which it will add £22bn of assets under administration and 90,000 life policies.
Quilter announced on 11 December 2020 that it’s international life business was under strategic review – but that a sale was by no means certain.
In addition to its Isle of Man base, Quilter International has offices in Hong Kong, Singapore and Dubai.
Highly complementary businesses
Commenting on the transaction, Paul Thompson, chief executive of Utmost Group said: “This is a highly attractive acquisition for Utmost Group and underscores the importance of our Utmost International business. Quilter International is highly complementary to our existing international business from both an operational, product and distribution perspective.
“The acquisition is in line with our growth strategy and positions us well to benefit from the fundamental growth trends in the international life assurance sector.
“The acquisition confirms Utmost Group’s position as a leading insurance consolidator with £58bn of assets under administration and 600K customers on a pro-forma basis and gives us an enhanced platform to pursue acquisitions.
“I look forward to welcoming all the staff, customers and distribution partners to our Group. We are delighted to work with Quilter on this transaction and look forward to a productive partnership in the future.”
Paul Feeney, chief executive of Quilter added: “We are delighted to announce the proposed sale of Quilter International to the Utmost Group which represents an excellent outcome for all stakeholders.
“I would like to thank all our Quilter International colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of such a strong franchise.
“I am confident that the agreement we have reached with the Utmost Group will ensure the continued success of the business, with a focus on delivering good customer outcomes, as well as providing wider range of career opportunities for Quilter International’s employees within an enlarged international business.”