Reliance Mutual Insurance Society has agreed to purchase University Life, a wholly owned subsidiary of UK life insurer Equitable Life, for an undisclosed price.
The proposed sale follows an in-depth analysis by Equitable Life and is expected to liberate the company from costs associated with University Life. The insurer also said that University Life’s policyholders will benefit from being a part of Reliance Mutual, a company that specialises and has considerable experience in the administration of small closed life funds.
After the sale, University Life will become a wholly-owned subsidiary of Reliance Mutual.
Charles Thomson, chief executive of Equitable Life, said: The sale of University Life is in line with our goal of pursuing strategic options that benefit policyholders. Simplifying the business of Equitable Life makes it easier to assess the impact of strategic options and, if attractive, to implement them.
The transaction is subject to the approval of the UK Financial Services Authority but is scheduled to be completed during the second quarter of 2007.