Two major insurance-based wealth management solutions companies are merging. UK-based Utmost Group, which has 500,000 customers, has announced that it has reached an agreement to acquire Lombard International Assurance Holdings, subject to regulatory approvals. The acquisition includes Lombard International’s European business, which will become part of Utmost International, the international life insurance arm of Utmost Group. The transaction is expected to be completed by the end of the year and the total consideration will be financed by a £200m bank loan, with the remainder to be met from existing cash reserves.
With this acquisition, the British company, which manages assets worth £62.8bn, aims to strengthen its position in the European market as a leading supplier. The deal will add £43bn to assets under administration.
“The combined strength of Utmost International and Lombard International gives additional scale to the group. This will enable us to better serve our global customer base and distribution partners, utilising deep market insights, strong technical expertise and a broader product portfolio. The addition of Lombard International is highly complementary to Utmost's previous transaction--the acquisition of Quilter International completed in November 2021--which strengthened our presence in the UK and Asia. Lombard International's long-established networks in Europe will enhance Utmost’s global credentials and enable us to better serve our clients and partners, delivering long-term value to our people and shareholders,” said Utmost Group CEO Paul Thompson.
Lombard International continues in Luxembourg
Lombard International will continue to operate from Luxembourg with its existing product range, which will be distributed under the Utmost brand. Its assets under administration amounted to €49.4bn at the end of 2023. “This acquisition marks an exciting new chapter for Lombard International, ushering in a period of expanded opportunities for our customers, partners and employees. The combined group will offer unrivalled service and expertise to support the evolving wealth planning needs of our clients. The strategic fit between Lombard International and Utmost, with an aligned focus on growth and customer centricity, will enable the combined entity to continue its growth trajectory and seize the opportunities ahead,” commented Lombard International Group CEO Stuart Parkinson.
The two companies have similar operating models. Bringing them together will therefore create more effective synergies. Utmost illustrates that if the transaction had been completed on 31 December 2023, the group would have benefited from an increase in Solvency II gross economic value from £2.386bn to £3.150bn and a group solvency capital requirement (SCR) coverage ratio of 173%.
This article was first published in French on . It has been translated and edited for Delano