Mutual insurer Royal London’s members have voted overwhelmingly in favour of a proposed £219m deal to buy Co-operative Banking Group’s life insurance and asset management businesses.
At the firm’s extraordinary general meeting held in London this morning, some 95 per cent of members voted in favour of acquiring the businesses, with just 5 per cent voting against or abstaining the deal.
The acquisition, which is subject to regulatory approval, is now expected to be completed in summer 2013.
Royal London chairman Tim Melville-Ross says: “The acquisition increases our scale, capabilities, profitability and financial strength.
“The board believes it will support further our mutual dividend policy which has already seen over £325m allocated to our members accounts since 2007.
“It is transformative and exciting for us and we look forward to welcoming the Co-operative policyholders into Royal London.
“We become an even more substantial player in the UK life and pensions market and it is a landmark step forward representing significant financial and strategic value to the group and our members.”
The acquisition will see Royal London’s assets under management increase from £50bn to £70bn.