Royal Liver has confirmed it has been approached by Royal London about a possible merger.
However, a spokesman for Royal Liver, Britain’s second largest friendly society, says discussions are at a “very early stage” and says no proposal has formerly been put to the firm’s delegates, who represent the society’s 1.7 million members.
But the firm did say its commitment to mutuality obligates it to “explore the merits” of a possible combination of the two organisations.
According to a report in The Times this morning, Royal Liver is believed to have sent letters over the weekend outlining the discussions to 200 delegates.
A Royal Liver spokesman says: “The Board of Royal Liver announced today that it has been approached by Royal London regarding a possible combination of our two organisations.
“Discussions are currently at a very early stage and there can be no certainty that they will progress or that any proposal will be put to the Delegation.
“In any event, it is likely to take time to fully consider the merits of any transaction and no further announcement can be expected until such consideration has been undertaken.
“During the last two years, Royal Liver has pursued a modernisation strategy to enhance the interests of the Society’s members.
“This strategy has delivered significant results including an improvement in cost control and the creation of market competitive manufacturing and distribution businesses in both the UK and Republic of Ireland through the Progress, Caledonian, Park Row and Citadel brands.
“The Board of Royal Liver remains committed to mutuality and in this context believes that it is appropriate to explore the merits of a possible combination with Royal London.”
Any formal proposal would be subject to approval by the Royal Liver delegates.
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