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Canada Life acquires Retirement Advantage

House-Property-Ladder-Rising-Prices-640.jpgCanada Life has announced it will buy Retirement Advantage.

Canada Life did not say how much it paid for the pension and equity release specialist, which has over £2bn in assets under management, £1.5bn of which sits in a block annuity deal.

The deal allows Canada Life to expand into offering equity release mortgages. The company said it also “reaffirms [Canada Life] commitment to the United Kingdom”.

Retirement Advantage praised the deal for providing its clients with “greater retirement protection”.

Group chief executive Craig Fazzini-Jones says: “This acquisition is a positive endorsement of the business plan we adopted following the UK pension reforms announced in 2014 that transformed our business and drove the creation of innovative retirement solutions. As we join Canada Life, we will be well positioned to build upon that success and provide greater retirement protection for our customers.”

The deal should close in the last quarter of the year.

The agreement follows a deal Legal and General struck with equity release provider Key Retirement in 2015, but does not restrict distribution to a single provider.

Under a tied distribution model, the contract allowed Key Retirement to deliver advice restricted to L&G products.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Was the primary objective of Retirement Advantage’s business plan adopted following the UK pension reforms announced in 2014 to find a rival willing to buy it out?

  2. Simon Sanderson 24th August 2017 at 3:28 pm

    Greed won in the end. MGM as it was before was a good solid company. Shame what the board did to the place. Another lost to the money men.

  3. Does this mean we’ll get loads of follow-up calls after requesting a lifetime annuity quote from Canada Life, plugging products we didn’t ask for?

  4. MGM wasn’t bad but Canada Life was probably one of the best for annuities. Great service, competitive rates, so this has to be a good thing . As interest rates increase, so the popularity of the OMO and annuities in general will no doubt enjoy a resurgence. This is therefore good planning by Canada.

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