UK financial services regulator the Prudential Regulation Authority (PRA) has approved the Royal London Mutual Insurance Society’s acquisition of Co-operative Insurance Society (CIS), the life insurance business of The Co-operative Banking Group.

Additionally, the Financial Conduct Authority (FCA) has approved Royal London’s acquisition of The Co-operative Asset Management, together with FCA-regulated subsidiaries of CIS.

Royal London Group CEO Phil Loney said the approval is a significant milestone in the process of buying Co-operative’s life insurance and asset management businesses.

"The transaction can now go forward to completion and we can start to realise the benefits for Royal London members and for the Co-operative’s policyholders," Loney added.

The approvals follow the signing of a sale and purchase agreement earlier in 2013 between both parties and the transaction is expected to complete on 31 July 2013.

As part of the completion process, CIS is required to be converted from an industrial and provident society to a limited company, and change its name to RL (CIS) Limited.

RL (CIS) Limited’s name will change to Royal London (CIS) Limited, after the completion of the transfer to Royal London.

Co-operative Banking Group CEO Niall Booker said that the transfer of ownership to Royal London will ensure the continued protection of policyholders, within a strong, mutual business with the necessary scale and focus on the long-term savings sector.