LV= (formerly Liverpool Victoria) has entered into an agreement to acquire Tomorrow (formerly GE Life) from Swiss Re. The option agreement becomes exercisable in late December 2007, subject to regulatory approval.
Tomorrow’s range of specialist enhanced annuities, equity release lifetime mortgages, and pension products including SIPPs, will be distributed under joint LV= and Tomorrow branding from 1 July 2007.
However, from 1 January 2008, LV= would integrate Tomorrow’s new business operation and offer the former Tomorrow products under the LV= brand.
LV= says the Tomorrow business is a good fit with its strategy and complements its existing strength in protection and with-profits products. Tomorrow is one of the UK’s leading providers of flexible retirement solutions, selling £785m of new single premium business in 2006. A recent comprehensive strategic review by LV= identified flexible retirement products as an attractive market segment for growth.
LV= would retain Tomorrow’s new business operations in Hitchin and its regional sales offices. Hitchin would be developed as the core centre of expertise for the LV= flexible retirement offering. The capabilities, experience and distribution relationships of the Tomorrow new business management, sales force and employees will also be maintained.
Mike Rogers, group chief executive of LV= said: “The proposed acquisition of the new business capability of Tomorrow will give us a strong market presence in three flexible retirement product sectors, with an established and well-regarded IFA distribution network.
“This proposed acquisition is in line with our strategic vision to expand our proposition into the ‘flexible retirement’ market, it transforms the growth prospects for our life business, and should create substantial value for our members.”
Swiss Re completed the acquisition of the Tomorrow business on 14 December 2006.
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