"ReAssure is a highly regarded manager of closed book assets and has the experience to deliver continued high quality investment and administration services"
ReAssure has acquired Quilter’s heritage life and pensions division, Quilter Life Assurance, for £425m.
The transaction is expected to complete at the end of 2019, subject to regulatory approval from the PRA.
Quilter Life Assurance, a wholly owned subsidiary of Quilter, is a substantially closed book of unit-linked policies. Formerly the core of Quilter’s UK business, Quilter Life Assurance consists of pensions, investment and savings, and protection products with both retail and institutional offerings.
Quilter Life Assurance had gross assets totalling £12.3bn at the end of June and recorded operating profit before tax of £26m in H1 2019.
Paul Feeney, chief executive officer of Quilter, said: "I am delighted we have agreed to sell Quilter Life Assurance to ReAssure. ReAssure is a highly regarded manager of closed book assets and has the experience to deliver continued high quality investment and administration services to clients of Quilter Life Assurance.
"The Quilter Board is currently minded to return a meaningful proportion of the net surplus proceeds arising from the transaction to shareholders and will consult with them on the most appropriate means of undertaking this."