View the article online at http://citywire.co.uk/money/article/a486131
Royal Liver agrees to Royal London takeover
Troubled mutual insurer Royal Liver has signed a transfer agreement which will pave the way for its takeover by Royal London.
Troubled mutual insurer Royal Liver has signed a transfer agreement which will pave the way for its takeover by larger mutual Royal London.
Royal London said the transfer of Royal Liver’s assets and liabilities was subject to approval from the Financial Services Authority and the elected representatives of the Liverpool-based mutual’s members.
Royal Liver delegates will vote on the deal at the annual general meeting which will be held in early May 2011. Royal London and Royal Liver signed a deal, which allows further due diligence, in June 2010 as part of long-running .
Royal London made a bid for Royal Liver, which has £3.1 billion of assets (December 2009), in 2007, but talks collapsed. If the merger goes ahead the enlarged group will have assets of more than £33 billion and almost six million customers.
Royal Liver has faced a number of problems in recent years. Chief executive Steve Burnett left in September 2009, while finance director was dismissed over £3 million of unauthorised payments. Its IFA business closed following an order from the FSA to pay £7.8 million in redress to clients.
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