Completion of Quilter Life Assurance Disposal

RNS Number : 4610Y

Quilter PLC

02 January 2020

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

FOR IMMEDIATE RELEASE 

2 January 2020

Quilter plc ("Quilter" or the "Group" or "the company")

Completion of Quilter Life Assurance Disposal and Proposed Cash Return to Shareholders

Further to the announcement of the proposed disposal of Quilter Life Assurance ("QLA") on 5 August 2019, Quilter is pleased to confirm that the sale of QLA to ReAssure Group plc ("ReAssure") completed on 31 December 2019. Total cash consideration was c.£445 million, representing the agreed cash consideration of  £425 million together with accrued interest payable under the sale agreement up to the completion date of c.£20 million.

The sale was structured under a lock-box mechanism with effective economic interest passing to ReAssure from 1 January 2019. Interest income on the agreed sale proceeds was due to the Group from that date until completion. Therefore, the contribution from QLA earnings to the Group's 2019 dividend of c.£20 million represents a partial advance distribution of sale proceeds.

After allowing for costs and the capital impact of the transaction together with other expenses associated with the sale, the Board of Quilter considers the net surplus proceeds from the sale to be £375 million and regards this sum to be excess capital which is available for return to shareholders, in full. The Quilter Board regards the proposed distribution to represent the full net surplus proceeds from the transaction after accounting for the contribution from QLA earnings to the Group's 2019 dividend.

Quilter will update the market on the method and timing of the capital return as soon as practical and, in any event, no later than at the time of the announcement of its Full Year results announcement in March 2020.

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Enquiries Investor Relations: John-Paul Crutchley Keilah Codd	[phone] [phone]
Media: Jane Goodland   Tim Skelton-Smith	[phone] [phone]
Camarco  Geoffrey Pelham-Lane	[phone]
Aprio (South Africa) Julian Gwillim	[phone]
Company Secretary: Patrick Gonsalves	[phone]

About Quilter plc

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £109.8 billion in customer investments (as at 30 September 2019, excluding QLA).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial planning businesses, Quilter Financial Planning and Quilter Private Client Advisers; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business. Wealth Platforms includes the Old Mutual Wealth UK Platform; and Old Mutual International, including AAM Advisory in Singapore.

Since its IPO in June 2018, the Group's businesses have progressively rebranded to Quilter. The UK Platform will be the final business to rebrand; this will follow the safe delivery of the new platform technology.
Previous	New
Intrinsic	Quilter Financial Planning
Old Mutual Wealth Private Client Advisers	Quilter Private Client Advisers
Quilter Investors	Quilter Investors
Quilter Cheviot	Quilter Cheviot
UK Platform	Quilter Wealth Solutions
International	Quilter International

Disclaimer

This announcement may contain certain forward-looking statements with respect to certain Quilter plc's plans and its current goals and expectations relating to its future financial condition, performance and results. 

By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc's control including amongst other things, international and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc's forward looking statements.

Quilter plc undertakes no obligation to update the forward-looking statements contained in this announcement or any other forward-looking statements it may make.

Nothing in this announcement should be construed as a profit forecast.

 

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