After gaining the approval of regulators in Hong Kong and the Isle of Man, the RL360 Group has revealed it has completed its acquisition of Clerical Medication International Insurance Company (CMI) from Lloyds Banking Group plc. The deal was agreed for an undisclosed sum.
GBP7 billion in assets under management
CMI, which has around 100 members of staff, was put up for sale by Lloyds Banking Group in December last year after the financial institution made a decision to focus its attention on its main markets in the UK insurance and banking sectors. CMI, which was established in 1987 to allow savers in the UK to generate tax-free capital gains, has approximately 16,000 policies with more than GBP4 billion in assets under management. These have been transferred to RL360°, meaning the company now has around GBP7 billion in assets under management.
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A “natural fit”
Commenting on the acquisition, Chief Executive of RL360° David Kneeshaw suggested that the two businesses are a “natural fit”. He added: “CMI is an excellent addition to the RL360 Group. Its long-running focus on providing high-quality customer care and investor protection fits well with RL360°’s approach to doing business.”
Mr Kneeshaw went on to state that RL360° is determined to ensure the development does not affect the quality of its customer service, noting: “We remain fully committed to our existing RL360° products, markets, partners and customers. We will now move swiftly to integrate the businesses, whilst ensuring there is no impact on current service standards.”
RL360° first announced its intention to acquire CMI seven months ago in May. At the time, Mr Kneeshaw said that the move forms part of the company’s ongoing strategy to “build further scale and support [its] growth plans”. He added that CMI’s base in the Isle of Man, along with its “complementary book of business”, should help to ease the process of integration.
Since it was set up nearly three decades ago, CMI has helped to shape the Isle of Man’s financial services industry, so its acquisition by RL360° is being followed with interest by investors and experts within the financial services industry. The company has demonstrated a consistent growth record over recent years and the addition of CMI represents a significant step forward in this process.
The RL360 Group was established over two years ago to support the management-led buyout of RL360 Insurance Company Limited from the Royal London Group.