The longest-running mutual company in Scotland has completed a landmark acquisition deal with financial service provider Canada Life.
As reported by The Times, Scottish Friendly has made a deal with one of Canada’s oldest financial corporations to take control of policies for 127,000 customers. The deal will see the Glasgow based company increase their membership to almost 700,000 customers in total.
Canada Life accepted the deal after a competitive tender process to find a UK based mutual that would be able to take on pension plans and insurance policies for their customers, in what is being hailed as a landmark acquisition for the firm. The deal is comprised of roughly 80 per cent pensions and 20 per cent varying life policies.
The deal has been a long time coming, with Scottish Friendly courting the tender for nearly 18 months. It is seen as an excellent boost for the firm which announced that it would help create 50 new jobs, bringing the headcount to around 170 full-time staff from their hub in the Glasgow area.
Jim Galbraith, chief executive of Scottish Friendly, commented on the deal with insider.co.uk, saying that it was “a landmark acquisition for Scottish Friendly and helps to consolidate us as a leading mutual and a significant player in UK financial services.”
This deal is helping Scottish Friendly with a bold initiative to expand the company over the next few years, that now sees them nearing £5billion in UK based assets.
Galbraith said the deal, “forms part of our three-pronged strategy of organic growth, business process outsourcing for partners and mergers and consolidation, delivering the strongest possible growth and customer care for our members.”
Richard Priestley, MD & Executive Director, Insurance Division, Canada Life UK, said: “This is an excellent move for both organisations. Our priority in this transfer was ensuring customers receive the highest standards of care both during this transition period and beyond. Scottish Friendly has a great reputation in this area which gives us confidence that customers will be in good hands.”
With any deal like this, there are questions that customers have. To help get anyone up to speed with what the agreement means, especially if you have a policy with either company, here is essential information you’ll want to know.
What does the deal mean for Scottish Friendly?
It will see the company grow and look after the policies of customers who were previously with Canada Life UK. With the transfer in place, it’s estimated that Scottish Friendly will effectively double in size.
What services will Scottish Friendly be taking care of?
They will be looking after several products including pension plans, endowments, investment bonds, whole of life policies and protection policies. Most of the services were already offered by Scottish Friendly, but some are new to the firm, who are taking this as an opportunity to expand their current offerings.
What does the deal mean for Canada Life UK members?
The deal will mainly affect Canada Life UK customers who had their agreements in place before 2003, but there shouldn’t be any problems with current services being transferred across.
Will the new deal cause any disruption?
The transfer of services is not expected to create any problems for members as Scottish Friendly is hoping for a seamless transition where users current plans won’t be affected or altered.
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