Britannic Group plc today announces that it has agreed to acquire Allianz Cornhill Insurance plcs life operations for an estimated 110 million cash.
The acquisition is to be funded from Britannics shareholders retained capital.
Allianz Cornhills Life Operations are closed to new business and comprise approximately 506,000 policies, predominantly life non-profit and unit-linked business, with total assets of approximately 735 million as at 31 December 2003.
The acquisition is expected to be completed by December 31 2004. The Life Operations assets will be managed by Britannic Asset Management.
Britannic also announces that Peter Thomas will be joining the group as chief executive of Britannic Management Services. Thomas has for the last three years been vice president and general manager of Unisys Insurance Services.
Britannic group chief executive Paul Thompson says: “This is an attractively sized and priced acquisition which makes a very good start to delivering our aim of being a major owner and administrator of closed UK life funds. It also supports our aim to provide long term stability for all our policyholders within a growing closed life fund specialist environment.”
Allianz Cornhill finance director George Stratford says: “This sale of our Life Operations allows Allianz Cornhill to release capital which will enable it to concentrate on and grow its core business of general insurance.”