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Euro reform and funding may hamper move to sell Partnership

Insurance analysts believe Cinven’s plans to offload Partnership Assurance could falter due to uncertainty around European regulatory reforms and difficulties in attracting funding.

Reports last week said Cinven had spoken to Morgan Stanley, Goldman Sachs, Lexicon Partners and Deutsche Bank about a possible £750m sale and is currently choosing an adviser.

Insurance analysts say only Resolution, which has distanced itself from any big acquisitions before 2013, has the resources to undertake a deal of this scale.
Investec insurance analyst Kevin Ryan says: “I think an asking price of £750m is very ambitious, given that pre-tax profits in 2010 were only £35.4m.”

A specialist life insurance analyst, who did not want to be named, says: “I do not think there will be a stampede of insurers looking to buy it. Funding is difficult and, with Solvency II up in the air, people are not sure about capital requirements.”

Finance & Technology Research Centre director Ian McKenna says: “Partnership has broken new ground in enhanced annuities, which is an area that the big providers will inevitably want to enter.”

A Partnership spokesman says: “We do not comment on market speculation.”



LibDem conference: Additional 2250 inspectors to fight tax evasion

A team of 2250 tax inspectors is being recruited to crackdown on tax avoidance among 350,000 of the country’s wealthiest people, according to Treasury chief secretary Danny Alexander. In his speech to the Liberal Democrat Conference today, Alexander also confirmed the LibDem’s “aspiration” to raise the income tax threshold to £12,500, after achieving the coalition […]

Steve Webb positive on save more tomorrow pledge

Pensions minister Steve Webb says the Government should look at strategies to increase pension contribution levels, such as Save More Tomorrow, once the current auto-enrolment reforms have bedded in. At a fringe event at the LibDem conference in Birmingham this week, Webb said the Government would be looking at ways of ensuring people do not […]


FTSE 100 slumps 4.64% at close as US markets continue to fall

The FTSE 100 closed down 4.64 per cent today and US stock markets fell in morning trades following news of the US Federal Reserve’s economic stimulus. The Dow Jones Industrial Index was down 3.34 per cent to 10,754 by 11.40am while the S&P 500 was down 3 per cent to 1,131. The stimulus plan, called […]

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 


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