Scottish Friendly is to acquire Marine & General Mutual in a deal that will double the mutual’s assets to around £2bn for an undisclosed sum.
The transaction is expected to complete in the second quarter of this year, subject to approval from members, regulators and the High Court.
Marine & General Mutual was rebranded MGM Advantage in 2008 before private equity firm TDR Capital purchased the annuity business in 2013, creating a new life company.
However, the mutual society was not part of the deal and subsequently closed to new business and reverted to its original name. It is this part of the business that Scottish Friendly has acquired.
Scottish Friendly chief executive Fiona McBain says: “This announcement is a tangible outcome of our strategy to diversify and grow the Scottish Friendly group. The overall efficiency of Scottish Friendly’s business has resulted in our ability to competitively tender to take over existing financial services companies and run them more effectively and more efficiently.
“We are particularly proud of having secured the opportunity to double in size. The takeover of M&GM will give us additional economies of scale that can drive further efficiencies and increased value to all of our policyholders, including those transferring from M&GM.”
M&GM chief executive David Gullard says: “As we explained to our policyholders and members in our Strategic Report for 2013, we have been seeking to secure the long-term future of our customers through a transfer to another organisation. This involved a thorough process considering a number of potential operations and we were delighted to select Scottish Friendly.”