UK - Aberdeen Asset Management has acquired the Isle of Man-based offshore life assurance business of Old Mutual International (OMI), a subsidiary of Old Mutual, for £36.15m.
The acquisition of the life assurance business, which closed to new business in 1998, is part of Aberdeen’s strategy of combining growth through acquisition activity with organic growth through an increased diversity of distribution channels and a wider choice of funds.
This transaction does not affect the OMI’s successful offshore life assurance and fund management businesses managed from Guernsey nor the offshore private banking business of Gerrard Private Bank based on the Isle of Man, Jersey and Guernsey.
The business has £15.4m worth of net assets and an embedded value of £20.75m.
Aberdeen said it intends to reopen OMI to new business, targeting the sale of offshore investment products incorporating a “life assurance wrapper” through the company’s distribution channels.
Michael Newman, chairman of Old Mutual Isle of Man said: “The Old Mutual International Isle of Man transaction removes an obvious duplication in our corporate structure and enables us to focus even greater resources on our growth business.
“Our service to offshore customers through our Guernsey based Old Mutual International and Gerrard’s offshore bank remains totally unaffected.”
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