Winterthur Life plans to launch an Isa and a with-profits bond product later this year now that it h...
Winterthur Life plans to launch an Isa and a with-profits bond product later this year now that it has completed its purchase of Colonial UK's life and pensions business, writes Kira Nickerson.
As part of the £300m acquisition, which boosts the group's funds under management from £2bn to £7bn, Winterthur gains a £2.5bn with-profits fund, which will enable it to broaden its product range.
John Finlan, chief executive of Winterthur Life, said: "We intend to extend our product range, now that we have the strength of economies of scale, and will look to launch a with-profits bond and an Isa later this year.
"We are also looking at the possibility of a with-profits annuity product as we want to get involved in annuity planning going forward. Another future launch will be a simplified Sipp product by the year end, which we hope will give us an edge in the market."
Colonial's life funds are to be merged with Winterthur's over the coming months.
As Winterthur focuses on selling through its established IFA channel it will be severing ties with Colonial's 490 strong sales team. This sales team was franchised and were not directly employed by Colonial and therefore are not employed by Winterthur now, Finlan said.
However, the acquisition does mean greater opportunities for a number of Colonial staff within the enlarged company, and Winterthur is currently consulting with them.
Headquarters for the combined company are as yet undecided, although it is believed it will be based in Basingstoke where Winterthur is located.
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