Changing demographics of the ageing population combined with a lack of government funding for long-term residential care are fuelling the impaired life insurance market, according to a partner at Clyde & Co.
James O’Shea, a partner at the law firm that advised Partnership Group Holdings (PGH) and Phoenix Equity Partners on the £150m sale of Partnership’s majority shareholding to Cinven, speaks of the importance of the market in which PGH operates.
“Cinven's investment, its first in the insurance and financial services sector, is a testament both to the quality of the PGH management team and the significance of this market,” he says.
In 2005, Clyde & Co advised on the demutualisation and management buyout, backed by Phoenix, of the Pension Annuity Friendly Society (PAFS), PGH's predecessor.
PAFS was established in 1995 as the UK's first writer of impaired or enhanced annuities, and the 2005 buyout marked the first ever cash demutualisation of a UK friendly society.
“We have been working with Partnership, the leading market provider of annuities for people with serious medical conditions and those needing residential care, since its inception,” O’Shea says.
“For us it is tremendously satisfying that we have been able to support PGH from its formation through successive stages of growth – long-term close relationships based on our in-depth insurance expertise are key to the success of our corporate insurance practice.”IFAonline
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