Up to 240 jobs are at risk as a result of the merger of Just Retirement and Partnership, Money Marketing can reveal.
The insurers – which are due to merge before the end of the year – estimate headcount will reduce by 5 per cent in the six months after the deal completes.
In addition, the firms predict a further 10 to 15 per cent cut in staff numbers in the following two years.
Just Retirement and Partnership currently employ around 800 and 400 people respectively.
A note in a joint merger document published today says: “These figures also exclude the positive impact of any growth in the business of the combined group following completion which would result in fewer reductions in headcount.”
It adds: “No decisions have been made to date and, therefore, the precise number of employees and specific teams, roles and locations affected will depend on the outcome of a post-completion consultation and integration planning process.”
The firms are aiming to make £40m of savings by 2018.
The document also reveals Partnership chief executive Steve Groves is likely to receive over £1m in a severance package once the merger completes.
He will receive £733,794, representing a year’s basic salary and a year’s payment in lieu of benefits.
In addition, he will be paid a £4,750 redundancy payment as well as a bonus for 2015.
In 2014, Groves was awarded a bonus of £375,000 in cash and £187,000 in shares.
Groves currently has 9.6 million shares in Partnership and is permitted to sell up to 25 per cent once the deal completes.
On today’s share price of 131.5p he would pocket £3.2m.
Each Partnership share will be turned into 0.834 shares in the new company, which will be lead by Just Retirement chief executive Rodney Cook.
Just Retirement and Partnership declined to comment.