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
The brand will be created under the GE name which will build on NatMut's
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
NatMut members will get a £500 cash lump sum for loss of membership
rights. With-profits policyholders will receive further benefits when their
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
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.”