Daily Insurance Industry News
Daily Insurance Industry News
Thursday 22nd of March 2018
October 31, 2008

Friends Provident abandons sale of Lombard

by Gill Montia

Story link: Friends Provident abandons sale of Lombard

Friends Provident has announced that it is abandoning the sale of Lombard, its wealth management business.

The Lombard unit has been up for sale for nine months but according to the group’s chief executive, Trevor Matthews, Friends has now decided to retain and develop the business.

The life and pensions provider began a programme of disposals after its plans to merge with closed life funds consolidator, Resolution, failed late last year.

Swiss Life had shown an interest in Lombard but it is understood that offers for the business were below the £400 million paid for the unit when it was acquired, in 2005.

Friends says it will be proceeding with the sale of its 52% stake in fund manager, F&C Asset Management, and is talking to a number of potential buyers.

The company also reported a 14% year-on-year fall in sales during the nine months to the end of September, to £701 million.

Sales at its international divisions increased 29% during the period but the UK saw a 24% fall, as the company withdrew from some markets to focus on its protection and group pensions business.


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