Nationwide Building Society will sell Legal & General protection, investment and pension products to its members starting today.
The strategic distribution agreement was made last year and Nationwide will sell L&G products via its 3,300 team of financial consultants.
As part of the strategic agreement, L&G has completed the acquisition of Nationwide Life and Nationwide Unit Trust Managers for £293m.
The acquisitions are financed out of the proceeds of L&G’s £600m innovative Tier One capital issued in May last year.
L&G group chief executive Tim Breedon says: “The strategic distribution agreement with Nationwide has the potential to become one of our largest. I look forward to working with Nationwide for the benefit of their members, and for the significant opportunities this brings to Legal & General.
“This strategic alliance enhances our position as the partner of choice for Britain’s banks and building societies. Legal & General will continue to develop and expand distribution in 2008, through banks and building societies, IFAs, platforms and direct to market. Each channel is strategically important to us and we see opportunities in each to grow market share.”
Nationwide chief executive Graham Beale says: “Our strategic agreement with Legal & General enables Nationwide to focus on what it does best – distributing financial services products which are simple, accessible and straightforward for our 13 million members.
“In line with our policy of offering the best products from the leading providers in the market, the Society is now able to offer members a broader range of products to meet their protection and investment needs. For the first time an Ethical Trust will be available – an exciting new addition to a range of investment trusts, as well as innovative new policies like the Family Life Insurance Plan to protect families.”