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ScotLife stays independent after Royal London buyout

Scottish Life has been snapped up by Royal London in a £1.1bn deal which will see the pension specialist retain its independence and its Edinburgh headquarters.

The deal has been likened to the Scottish Amicable and Prudential agreement, whereby the Scottish life office remained an independent operation aimed exclusively at the IFA market.

The only area of integration is in asset management. A combined Royal London and ScotLife asset management operation will be based in London and have funds under management of £30bn. The marketing division of Royal London will move to Edinburgh.

ScotLife&#39s 220,000 members will each get £500. Qualifying with-profits policyhol- ders will be entitled to additional payments which they will get as an enhancement to their policy rather than as a cash payment.

Around half of ScotLife&#39s 560,000 with-profits holders will get a policy enhancement. The average value will be £3,500.

Royal London chief executive Mike Yardley says: “The future of Scottish Life is now secure and we will work closely with them to provide the resources to get the Scot-Life brand back to the top of IFA lists.”

Millbrae Financial Services managing director Carl Melvin says: “GE would have been a better fit. But Scot-Life has got brand aware-ness with IFAs and will continue to prosper. A strong parent will give ScotLife the resources to compete and develop its products.”

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