View more on these topics

RBS and Old Mutual on lookout for acquisitions

Despite the downbeat UK financial services market, two big players, South African insurer Old Mutual and the Royal Bank of Scotland, are on the hunt for acquisitions.

OM investor relations director James Poole says that while the company is in no hurry, it is looking at asset management as well as life insurance for a potential purchase as it looks to increase the amount its UK subsidiaries contribute to its overall business from a tenth to a third.

RBS is reportedly setting aside £1.5bn for acquisitions and chief executive Fred Goodwin says both acquisitions and a share buyback are possibilities, depending on the deals that present themselves.

The bank has made a number of acquisitions over the last few years, with its latest being the general insurer Churchill in June.

Rumours are circulating that OM is interested in bidding for AMP&#39s UK arm, with previous speculation naming Britannic as being in the company&#39s sights but Poole declines to rule any companies in or out of consideration.

He says: “There are a number of situations in the life insurance industry in the UK that are not looking terribly healthy at the moment.

“We want to make sure that anything we buy is OK. There are opportunities but we are not too sure how attractive they are. We have run the slide rule over several opportunities but we have decided against them.”

Cazalet Financial Consulting principal Ned Cazalet says “Old Mutual made it clear some time ago that it plans to develop its UK business. The question is what will it buy and when.”

Recommended

Bank is fined over laundering rules

The FSA has fined Northern Ireland-based Northern Bank £1.25m for breaching money-laundering rules.There is no evidence that any money was laundered through branches of the Nat-ional Australia Bank subsidiary but it failed in its requirement to ensure that clients were who they claimed to be.Between December 2001 and September 2002, it did not obtain “know […]

Product matters

Future Mortgages has gone through enormous change in the last few months. I suspect its new range is an important part of the renaissance, which has seen revamps from top management right through to distribution strategy. Almost all its management and sales teams are new.The lender has shifted its focus to the packaging market. It […]

Paragon may cut £10m at Mortgage Trust

Paragon is set to wield the axe in a bid to make around £10m in cost savings at its newly acquired subsidiary Mortgage Trust, formerly Britannic Money.An analyst&#39s report produced by Teather & Greenwood after Mortgage Trust was acquired by Paragon says the firm indicated it should be able to cut £10m from Britannic Money&#39s […]

The with-profits bonus strategy

A recent report suggests that two-thirds of people receiving endowment shortfall letters are doing absolutely nothing.No surprise there – but what about the remaining one-third? Are some of these people being pushed in the wrong direction?These projections take no account of terminal bonuses, which could well come to the rescue as the shining knight doing […]

Inheritance tax and estate planning – exemptions and reliefs

By Kim Jarvis, technical manager with Canada Life’s ican Technical Services Team In this article we look at the main exemptions and reliefs that are available on death. Within the article, spouse also means civil partner.   Nil-rate band Under current rules, any part of the estate that falls within the available nil-rate band (NRB), […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com