Intrinsic is set to buy adviser business Positive Solutions from Aegon, Money Marketing can reveal.
Money Marketing understands that PosSol staff and its 850 advisers could be informed of the deal today.
Aegon bought a 60 per cent stake in PosSol in 2002 from chief executive David Harrison and bought out the remaining 40 per cent in 2005 from staff, directors and IFAs in a deal that valued the company at £163m.
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The Aegon distribution arm, which includes Origen, Positive Solutions and a 20 per cent stake in Tenet, posted a combined loss of £2m for 2012.
Origen and PosSol made a combined loss of £6m in 2011 and lost £5m in 2010.
Intrinsic posted a £5.2m profit for 2012, up 62 per cent from £3.2m in 2011. The network also set aside over £2m in relation to expected complaint settlements, compared to a provision of just over £1m in 2011.
Last July Intrinsic went through a capital restructure which saw the firm’s management buy out shareholder Lloyds Banking Group. As part of the deal, other major shareholders Sanlam and Friends Life, as well as Intrinsic management, agreed to waive six years worth of dividend payouts thought to be worth around £20m.
Intrinsic bought IFA network Mint in 2008 to give the firm an independent arm and took on national IFA Ashley Law in 2009.
Aegon declined to comment and Intrinsic was unavailable for comment.
What exactly are they buying?
Having left PS to join Intrinsic, IFAs will enjoy a breath of fresh air. PS is too process driven and not customer centric (oops jargon !) , the compliance has grown to complete levels of stupidity. Intrinsic will benefit from PSs excellent technolgy. Let’s hope you will still be able to speak to Initrinsic staff by phone and not wait at least 24 hours for a call that never comes from Positive.
From what I gather over the past year or so, Pos Sol has transformed into a strong profitable business. Makes sense that a purchase would appear lucrative to many. I wonder if this has been confirmed or just speculation?
Having been part of the Intrinsic Network since 2007 and witnessed their growth in ‘Advisers’ both restricted and independent let’s hope they can also invest into the back-office compliance on all pre-approval actions. Having to wait anything between 12-20 working days is wearing rather thin!
What about Origen? Who would buy that? It does not look good for them. AEGON are bailing out very quickly.
@ Henry
PS made a good profit in 2012 based on significant exit charges on the large number of leavers (which tells you more about PS ).
However 2013 has seen them struggle again, profits rock bottom, leavers continue, no recruitment and PS operate a old version of TP so it is not their technology and not market leading.
This is no more about Aegon clearing the decks (after writing off most of the near £200m they bought PS for) but should be good for PS advisers with the option of multi -tie etc,, but can’t see their Newcastle HO surviving this, no need for it now
Great news for Pos Sol and Intrinsic, my business has been with Intrinsic for over 3 years and it is the first time in my 30 years in Financial Services, that i feel cared for, and they offer fantastic support and just a great place to be, plus they are forward thinking and gives a 100% support at all times.
I think it will be more beneficial for Pos Sol – now that they are a profitable business, they’ll only benefit more from the size of Intrinsic
@ anonymous
I remember that getting reported. Turned out the exit charges had nothing to do with the profit and it was just misconception. I think they made about £3mill profit.
Do agree with you that it will be fantastic news for PS Advisers. They will get access to enhanced Propositions, technology and surely Intrinsic’s business development program as well.
Mr. Peter Coleman might want to start updating his CV. Too many cooks spoil the broth and all that
It does make you wonder why AEGON are keeping hold of Origen which is the bigger of the loss makers? I suppose it will be a challenge getting anyone to but that firm, even for 1p.
Lots of idiotic posts going up from the Anonymous clan again!
Has any cash actually changed hands between Intrinsic and Aegon? This is normally what happens in a transaction descirebed as a ‘sale’?
What about the the Arch Cru and Keydata liabilities that PS have?