Scottish Widows and Clerical Medical merger to cost 305 jobs

by Gill Montia

Story link: Scottish Widows and Clerical Medical merger to cost 305 jobs

Lloyds Banking Group has announced that it is merging its Scottish Widows and Clerical Medical units.

Lloyds TSB’s takeover of HBOS last year meant the new group included Lloyds TSB’s life insurance arm, Scottish Widows, plus HBOS’s Clerical Medical and Halifax Life.

Bearing in mind the need to make cost savings of over £1.5 billion by 2011, streamlining the life insurance operations of the new company was always expected to be a priority and according to reports, Deutsche Bank has already been instructed to carry out a review of the entire insurance assets of the enlarged business.

In the meantime, the Clerical Medical brand will be abandoned from 1st July in a move that will cost up to 305 jobs.

The job losses will be split between the sales teams of both units and customer services. However, head offices will be maintained: in Edinburgh for Scottish Widows and Bristol for Clerical Medical.

Lloyds’ executive director of insurance, Archie Kane, says: “This is the first important step in our aim to establish one simplified organisation … we are mindful of the rich heritage and strength of the Clerical Medical brand. However, our research has shown that Scottish Widows is the most recognised and trusted brand in the market place.”

Last week, Lloyds Banking Group announced that it is closing its Bank of Scotland Motor Finance unit to new business, with 985 jobs expected go over the next two years.