View more on these topics

Deal sees society link up with L&G

Nationwide Building Society and Legal & General have entered into a distribution deal that will mean Nationwide selling L&G’s life, investment and pension products.

As part of the deal, L&G is buying Nationwide subsidiaries Nationwide Life and Nationwide Unit Trust Managers.

The current value of the two subsidiaries is 285m after the extraction of 70m of capital by Nationwide in December 2006 but communications and commercial director Stuart Bernau says the final figure will be nearer to 390m when the deal completes this summer.

Bernau says the building society came to the decision to sell off the two subsidiaries after a strategic review of its businesses because it wants to focus its resources on distributing products to customers rather than on manufacturing products.

Nationwide will sell L&G products through the society’s 2,000 team of advisers and the distribution arrangement is expected to be launched on completion of the sale.

It is assuring customers with existing life insurance, investment or pension policies that they will see no change in the short term but over time some plans may be moved to L&G’s life, portfolio management and unit trust companies. The 270 staff working in the Nationwide Life and Nationwide Unit Trust Managers businesses will be taken on by L&G and will continue to work from offices in Swindon.

Bernau says: “We had a beauty parade with three companies but Legal & General was the best fit in many ways in terms of product range, technology systems, people and culture.”

Legal & General group chief executive Tim Breedon says: “It clearly supports our corporate strategy to provide access to our extensive range of value for money products and services to consumers in the UK, through the broadest possible range of distribution channels.”


Kensington in specialist prime move

Kensington has made its full launch into the specialist prime market.The lender has been testing prime self-cert and buy-to-let mortgages over the past six months and rolled them into the wider market last week.Self-cert deals start at 5.45 per cent with a maximum loan to value of 90 per cent while BTL loans are available […]


Goss & Co rebranded as Jelf

Corporate consultancy Goss & Co is rebranding to Jelf Group, following the merger last year. The Reading-based corporate consultancy, Goss & Co says the rebrand is part of the process to fully integrate both businesses and provide a consistent manner in which to communicate with clients, suppliers and providers. Group chief executive Alex Alway says: […]

Co-op ethical fund is the first to head all-company sector

An ethical fund has topped the UK all companies sector for the first time, as Investment Management Association statistics show the ethical investment market is set to break through the £5bn barrier.The £146m Co-operative Insurance Sustainable Leaders fund is first out of 293 funds on a 12-month basis, returning 29.8 per cent compared with an […]

Treasury backtracks on PTA U-turn

The Treasury is understood to have offered the industry a lifeline on pension term assurance which could see the revival of the product.In a surprise move, the Treasury is thought to be seeking consultation from some quarters of the industry about a proposal to allow consumers to take out PTA if they self-certify that they […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm