Royal London in talks to acquire Royal Liver
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Royal London is in talks to buy Royal Liver two years after the Liverpool-based insurer rejected a merger deal.
A Royal London spokesman has confirmed that discussions are taking place between the two firms but says they are at an early stage.
The news follows talks between LV= and Royal Liver last autumn about a potential merger. The Mail on Sunday reports that these discussions broke off after LV= could not give assurances about the future of Royal Liver’s Irish operations if a deal went ahead.
The talks are thought to have been spurred on by the FSA’s investigations into the mutual sector and concerns regarding the capital adequacy of smaller mutuals. Last October, the FSA sent out a Dear CEO letter to mutual insurers with with-profits funds about the use of member assets. Any deal would have to be approved by Royal Liver’s 200-stong committee of elected members.
The Mail on Sunday also reports that the FSA is poised to take enforcement action against Royal Liver’s handling of the wind-up of its IFA arm Park Row.
In March last year, Money Marketing revealed that Park Row was being investigated by the FSA as part of a review of its systems and controls.
Royal Liver attempted to sell off the loss making arm of the business but could not find any buyers and Park Row was wound down late last year.
Since then former Park Row advisers have suffered long delays getting reauthorised by the FSA.
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Readers' comments (1)
Andrew Cummins | 7 May 2010 2:02 pm
Royal Liver is a massive organisation, and should remain due to very satisfied customers. Any reports or rumours of foul play are not the fault or the responsibility of Royal Liver, and it's employees at the Pier Head provide a very advantageous and constructive service to policy holders. I know this because I'me there every day, I know what comes out of people's mouths, and I never hear anything that disgraces Royal Liver's reputation whatsoever. At the Pier Head, there is a very strong bond and working relationship amongst it's hard working and dedicated staff, and the various team efforts to provide professional and adequate service to customers is nothing short of excellent, helpful and constructive.
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