The boards of UK insurance firms Royal London and Royal Liver have ended discussions regarding the potential combination of the two societies, just months after the talks were first announced on April 30, 2007.
Royal London, the largest mutual life and pensions company in the UK, with group funds under management of GBP32.7 billion (as at June 30, 2007), said that since the initial announcement, the management and boards of both organizations have worked together constructively in examining the benefits of, and structure for, a combination of the societies.
However, in a press release regarding the potential merger, Royal London revealed: After careful thought and thorough consideration, the board of Royal Liver has concluded that although the proposal from Royal London had considerable merits for their members, they felt that those interests will be better served by pursuing an independent strategy.
According to the Times Online, Royal Liver, the smaller of the two insurers, had GBP3.6 billion assets under management at the end of last year. The publication revealed that, had the merger proceeded, it would have been the largest union in the mutual life and pensions market since Royal London paid GBP1.1 billion to acquire Scottish Life in 2000.