Protection firms Bright Grey and Scottish Provident could be merged after Royal London takes over ScotProv.
Commentators consider that keeping the two brands independent is not a feasible option over the long term.
Highclere Financial Services Alan Lakey says: “Running the two side by side cannot be a permanent thing unless they can distinguish themselves, otherwise they will be fighting each other.
“The two brands target the same market and Bright Grey’s menu product is mirrored on the Scottish Provident product.”
CBK principal Peter Chadborn says: “I think that both brands are strong enough that they could survive independently but the whole purpose of a takeover is consolidation so I would be surprised if they were kept separate for long.”
But Chadborn does not see any obvious value in merging the two. He says: “It is not a natural marriage. I cannot see the attraction in them coming together. That is not to say it could not work but it is difficult to think a young company like Bright Grey and a more established firm such as Scottish Provident could merge seamlessly.”