View more on these topics

MGM Advantage sold to TDR Capital

Business Handshake 480

MGM Advantage has been sold to private equity firm TDR Capital for an undisclosed amount.

An MGM spokesman says the agreement will see a new life company created, with all MGM staff transferred to the new business. TDR will gain the rights to the MGM brand and the provider’s flexible income and enhanced annuity products.

MGM’s mutual society is not included in the deal. It will revert to its former name, The Marine and General Mutual Life Assurance Society, and will close to new business.

As part of the agreement, a £9m goodwill payment will be distributed between 15,000 eligible policyholders. These include investors who hold with-profits policies and anyone who invested in a flexible income annuity before 28 February.

The distribution of the £9m is expected to include a fixed component plus an additional amount that depends on the type of policy investors hold, its value and how long they have held it.

Some £800m of risk linked to MGM’s enhanced annuity business will be transferred away from mutual members to the new life company. This is expected to benefit with-profits policyholders through increased bonuses.

The deal, which is subject to FSA approval, is expected to be finalised later this year.

MGM chief executive Chris Evans says: “This deal is in the best interests of our members and policyholders and will help us continue to grow the business.”

Better Retirement Group director Billy Burrows says: “This must be good news for clients and advisers. With a bigger and secure capital base, MGM will be able to increase its sales of enhanced annuities and hopefully continue developing more innovative annuity products.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm