London-based Omnilife Insurance said that it has decided to exit the group risk market in the UK as it is no longer a strategic priority for its business.
According to Omnilife, following its acquisition by Reinsurance Group of America (RGA) earlier this year, the company’s board had been mulling the future of its existing UK group risk operations.
The company said that it has reached an agreement with Legal & General (L&G) Group Protection after undertaking a competitive market review, under which the latter will work alongside intermediaries to invite Omnilife’s policyholders to change to L&G at or prior to their next policy anniversary.
The RGA subsidiary said that it has secured favourable terms, including rate extensions and other improved terms like increased event limits wherever suitable.
The company with immediate effect has closed to new business and existing quotations and policies that began before 1 July will be included within the scope of the transition. Omnilife expects the transition process to begin this month and completed materially within a year.
The company said that it is working together with L&G to develop and deliver a process that will minimise policyholder and also intermediary effort. Where there is further work for intermediaries, like transferring schemes to L&G outside the rate retest cycle, extra commission payments will be available, said the insurance firm.
The company, in a statement, said: “We would like to thank everyone who has supported Omnilife over many years and reassure you that we will continue to deliver the excellent service you’ve come to expect from us, even as we now run off this business. Through partnering with Legal & General we are confident that we will deliver a long-term solution with beneficial outcomes for you and our mutual customers.”
Omnilife’s parent company – RGA, which is headquartered in Missouri, US, offers solutions in individual life reinsurance, group reinsurance, individual living benefits reinsurance, financial solutions, facultative underwriting and product development, across the world.
In May, RGA agreed to acquire the life run-off portfolio of Generali’s UK branch for an undisclosed price. The portfolio involved in the sale primarily consists of annuity business, corresponding to nearly £598.33m in best-estimate liabilities, as of 31 December 2018.