Old Mutual Wealth Life Assurance Limited
On 31 December 2019, the Group through its ReAssure subsidiary acquired 100% of the UK closed book business of Quilter plc, consisting of Old Mutual Wealth Life Assurance Limited and its subsidiary Old Mutual Wealth Pensions Trustees Limited, including around 300 employees. The business acquired provides pension schemes, protection products, investment solutions and savings offerings predominantly to the UK retail market.
The transaction is consistent with ReAssure’s strategy to grow its closed-book business and adds approximately 0.2 million customer policies increasing ReAssure’s total policy count to 3.2 million. The acquisition was funded from ReAssure’s internal resources.
The total consideration paid was USD 591 million in cash. The purchase price has been allocated based on estimated fair values of assets acquired and liabilities assumed as of the date of acquisition. The allocation required significant judgement.
Historic intangibles have been eliminated. The Group established acquired PVFP of USD 209 million which qualifies as purchased intangible assets. There was no goodwill recognised upon acquisition.
As the business was acquired by ReAssure, it was recognised as held for sale upon acquisition and the pro forma revenue and earnings related to the acquisition are not presented. Assets held for sale of USD 13 603 million (including investments of USD 10 994 million) and liabilities held for sale of USD 13 382 million (including policyholder account balances of USD 12 184 million) related to this acquisition are included in the balances which are further discussed in Note 11 “Assets held for sale“.