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EAG forced to sell Nvesta to cover liabilities

The defunct Eurolife Assurance Group has been forced to sell off Nvesta to cover its liabilities and pay compensation to policyholders.

Nvesta’s parent company EAG plunged into administration in August when this year’s £700,000 installment of a five-year compensation plan to policyholders who invested £17m into secured bonds in 1999 fell due.
Industry sources say Nvesta’s book of structured product is worth approximately £120m at current market value and will be worth about £140m by the time the policies mature by 2012.
It is looking for an investor to buy its book of business or buy the company outright.
Nvesta claims there is potential to generate more than £2.5m in revenue over the next four years from recurring revenue and commission on sales of replacement products to holders of maturing plans.
The firm has 12,000 plan holders and sold mainly through IFAs.
Nvesta is issuing an information memorandum subject to interested parties subject to a confidentiality agreement.
Nvesta finance director Simon Bottomley says it had no alternative but to close for new business and enact a run-off plan.
“The sale of Nvesta offers an opportunity for a buyer to fast track into the structured product sector. Alternatively, a buyer with an existing structured product business could take on the book with minimal additional overhead, adding most of the revenue generated to their bottom line.”


MEPs in probe on Equitable Life

A delegation of MEPs from the European Parliament committee of inquiry is to visit London on October 16 to take evidence on whether UK regulators supervised Equitable Life’s practices rigorously enough.

Bradshaw alerts IFAs to huge pension transfer market

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FSA quality of mortgage advice probe reveals failings

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Redwood says revenge is riding roughshod over regulation

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Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


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