Quilter could sell its Old Mutual Wealth Life Assurance unit
London-based Quilter, Old Mutual’s former wealth management business, is considering selling its Old Mutual Wealth Life Assurance unit, which accounted for just more than a 10th of the group’s assets under management at the end of 2018.
Quilter, which was spun out of Old Mutual in June 2018, said in its 2018 annual report that the legacy life assurance business was closed to new customers and was being “run off”.
Assets in that book stood at £12.4bn at the end of 2018, versus Quilter’s assets under management of £109.3bn at the time. By the end of March 2019, Quilter’s assets under management had risen to £114.9bn.
Quilter said on Thursday that it was undertaking “a strategic review” of its “heritage" life assurance business, which could result in a sale. No decision had been made “on any particular option”, said Quilter, which is led by CEO Paul Feeney.
“Accordingly, there can be no certainty that any transaction will be concluded, or if so, its timing or terms. A further announcement will be made if and when appropriate.”
Quilter said in its results for the year to end-December its life assurance business saw net outflows of £2.3bn in 2018, up from £1.6bn in 2017. This was mainly due to “the closure of the institutional life book of business”, which was announced in 2017.
“The remainder of the Quilter Life Assurance book ran off at a rate of circa 14%, which is broadly in line with expectations,” Quilter said.
In April, Quilter’s advisory business Intrinsic agreed to buy London-listed Lighthouse in a deal worth £46.2m.
The deal was in line with Quilter’s plans “to be the leading wealth manager across the UK, with face-to-face advice forming a core priority for the group”, the financial services group said at the time.