Holloway Friendly has taken the decision to close its Optimal Protection group risk brand to new business with immediate effect.
Holloway Friendly CEO Stuart Tragheim said the closure was a result of the brand's failure to achieve "sufficient scale despite the launch and promotion of new products in recent years".
He added: "As a mutual organisation Holloway Friendly must preserve value for our members, which is our primary concern. Optimal will of course continue to maintain current schemes and benefits while we go through this process, ensuring clients have continuation of cover."
The firm's schemes will be transferred to Canada Life, which will continue to honour the existing terms and conditions that were offered to customers at the time of purchase.
Claims incurred until the scheme transfers or ceases will continue to be assessed and paid - if valid - by Optimal. Claims after that period will be the responsibility of Canada Life as the schemes are transferred to them.
Optimal has this week written to advisers, assuring them the transfers from Optimal to Canada life will be "seamless", with no break in cover, the terms and conditions will be retained or enhanced and a dedicated team will be in place to help out.
Canada Life managing director Tom Stoves said: "As the market leader in group risk, and group life specifically, we were chosen by Optimal as the best option for their clients. Both organisations do provide a quality service which can make the transfer to us as smooth as possible.
"Canada Life look forward to working with advisers to provide a continuity of support for employers. As well as retaining the current benefits profile and rates, we have enhanced the original Optimal Support Service offering with additional benefits. We are proud of the standard of service we provide and look forward to welcoming Optimal customers."
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