This move comes after Lloyds decided to close its offshore operations to new business in order to focus on its core markets in the UK banking and insurance sectors. Lloyds put CMI up for sale in December last year.
With the addition of CMI’s 24,000 policies and more than £5bn in assets under management, the combined group will have around £8bn in assets under management.
“No secret”
“We have made no secret of the fact that pursuing acquisitions forms part of RL360°’s strategy to build further scale and support our growth plans,” said RL360° chief executive, David Kneeshaw. “We believe CMI presents a significant and attractive opportunity to accelerate this objective.
“Moreover, CMI’s base in the Isle of Man, as well as its complementary book of business, should ease the integration process.”
A spokesperson for RL360° could not yet confirm the purchase price.
Established in 1987, CMI was one of the first UK life companies to sell international life insurance. In 2009, its intermediary business merged with Scottish Widows and its brand was scrapped. There was, however, no change to the administration of CMI life insurance products.
RL360° was formed towards the end of 2013 after the Royal London Group decided to sell its life operations to private equity firm, Vitruvian Partners.
“Natural fit”
Kneeshaw said the acquisition of CMI was a “natural fit” and once the transaction is completed the two firms will move swiftly to integrate the businesses, ensuring there is no impact on current standards of service.
The transaction is subject to regulatory approval.
RL360° serves customers in Asia, Africa, the Middle East, Latin America and the UK. It also has offices in the Isle of Man, Hong Kong, Lebanon and Dubai.
