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GE to set up new brand after £75m NatMut buy

National Mutual has been bought by GE Capital in a deal worth £570m

which will see it merged with GE Life to create a new IFA specialist

pension brand.

The brand will be created under the GE name which will build on NatMut&#39s

expertise in Sipps. NatMut as a brand name could disappear.

GE Life already operates in the IFA market selling annuities, equity

release and guaranteed investment products. It will be working to develop

new annuity products, such as equity-based annuities.

NatMut says its offices will stay in Hitchin and it will keep its

existing staff. Its business will be transferred to GE early next year.

NatMut announced it was reviewing its mutual status in March. Aegon, LAHC,

Swiss Re, Canada Life and Winterthur are all understood to have looked at

the company.

NatMut members will get a £500 cash lump sum for loss of membership

rights. With-profits policyholders will receive further benefits when their

policies mature.

GE Insurance Holdings chief executive Clive Cowdery says: “The beauty of

this buy is the fit between our product range. We want to be in the

high-growth, high-margin products. We do not want to play in the

stakeholder market.”

National Mutual managing director Gavin Hill says: “GE is keen to develop

our products and we can do it much faster than as a mutual. We will

maintain or technical expertise and our specialism in the Sipps market.”

Richard Jacobs Pension & Trustee Services director Richard Jacobs says:

“There was a concern that National Mutual would just be swallowed up by one

of the other pension providers but this seems like good news for everyone.

GE has gone after very specific targets and has cherrypicked NatMut.”



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