Thursday 21 November 2019

Caledonian won't offer new products post-merger

Laura Noonan

CALEDONIAN Life won't offer new insurance products in Ireland for the next 18 months even if a hotly tipped merger with Royal London goes ahead over the coming weeks.

Bill Connolly, interim chief executive of Caledonian's parent Royal Liver, confirmed the outlook for the Irish business this weekend.

Mr Connolly was in Dublin for meetings with Royal Liver's 70 Irish delegates who are set to vote on the Royal London merger on May 10.

Some had expected that a deal would see Caledonian broaden its offering from protection business to life and pensions products.

"That's not in the plan for the next 18 months," Mr Connolly said, adding that it was "too soon to predict" whether the merger will be approved.

The deal must be voted on by the 70 Irish Royal Liver delegates plus 130 of their peers in the UK; it needs approval of 75pc of the membership to go through.

Mr Connolly stressed that there would be "no changes" for Royal Liver/Caledonian's 600,000 Irish policyholders if the deal goes through.

The 70 jobs of the Irish delegates will also be protected. Royal London is already in talks with the Central Bank on obtaining authorisation to operate Royal Liver's business as a branch here.

Royal London is Britain's largest mutual life and pensions company, and Royal Liver's board has said a merger represents "more certainty and security" for the smaller society.

Irish Independent

Also in Business