Paul Feeney is the CEO of Quilter, which is the rebranded Old Mutual Wealth. Picture: SUPPLIED
Paul Feeney is the CEO of Quilter, which is the rebranded Old Mutual Wealth. Picture: SUPPLIED

London-based Quilter, Old Mutual’s former wealth management business, has agreed to sell its life assurance business for £425m.

The deal “will further act to solidify Quilter’s position as an advice-led, modern wealth manager”, the company said.

Quilter said it will sell the Old Mutual Wealth Life Assurance unit, which accounted for slightly more than a tenth of its assets under management at the end of 2018, to ReAssure. The life assurance division consists of pensions, investment and savings and protection products.

“The Quilter board is currently minded to return a meaningful proportion of the net surplus proceeds arising from the transaction to shareholders, and will consult with them on the most appropriate means of undertaking this,” CEO Paul Feeney said.

Quilter said separately its adjusted profit before tax in the six months to end-June rose 5% to £115m. The board declared an interim dividend of 1.7p per share.

Assets under management and administration grew 8% from the end of 2018 to £118.4bn.

“While the uncertain political environment in the UK evidenced in the latter half of 2018 has continued into 2019, gross new business sales have held up well at £6bn,” Feeney said.

However, the group experienced “higher outflows in Quilter Cheviot following the resignation of some investment managers during 2018 putting pressure on net flows”.

hedleyn@businesslive.co.za