As of July 1 all products actively marketed by Tomorrow will be co-branded with LV=, including specialist annuities, equity release and pensions products including Sipps. Tomorrow products will be fully branded by LV= from January 1 2008.
Under the deal LV= has obtained an option to acquire Tomorrow’s new business capability, exercisable in late December 2007.
LV= group chief executive Mike Rogers says: “The proposed acquisition of the new business capability of Tomorrow will give us a strong market presence in three flexible retirement product sectors, with an established and well-regarded IFA distribution network. This proposed acquisition is in line with our strategic vision to expand our proposition into flexible retirement market, it transforms the growth prospects for our life business and should create substantial value for our members.”
Swiss Re’s UK Admin Re operation managing director Jonathan Yates says: “We are delighted to be entering into this option agreement. LV= will invest in the people and products required to grow these lines of business. This agreement honours the commitment we made to the market, employees and customers to maintain this business as a going concern.”
LV= says it will maintain Tomorrow’s operations in Hitchin and its regional sales offices.