Friendly society Family Assurance is selling its with-profits life and pensions business to Reliance Mutual Insurance Society as well as some term assurance policies.
Following a strategic review of the business, focus of the firm will now shift towards simpler products targeting low-cost savings, such as the Child Trust Fund.
Family Assurance - the tax exempt society which was formed in 1975 and now has assets of around £1.5bn of funds under management for 500,000 members - has signed a deal with Reliance to transfer 23,5000 policies worth around £260m to Reliance on 30th September.
Although the deal is signed, transfer of business is still subject to FSA approval and to agreement by members at the AGM on 7th July, says John Reeve, chief executive of Family Assurance.IFAonline
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