Questions and Answers
The Background
1. Why is Royal London acquiring Scottish Provident protection business?
In May this year, Pearl Group acquired Scottish Provident branded protection business, amongst other businesses, from Resolution. However, Pearl's focus is on closed funds so as part of the original transaction, Scottish Provident protection will be sold to Royal London where new business is a priority. The transfer has been subject to a legal process under Part VII of the Financial Services and Markets Act, with final High Court approval received on 4 December 2008.
Acquiring Scottish Provident supports Royal London's strategic plans in the protection market.
Pearl will retain the Resolution closed book. Please see question 15 for more information.
2. When will the acquisition be effective from?
Now that final High Court approval has been received, from 29 December 2008 Scottish Provident will become a division of the Royal London Group.
3. What brand will be used?
The Scottish Provident brand will remain
About Royal London
4. Who is Royal London?
Royal London is the largest mutual life and pensions company in the UK with group funds under management of £34.5 billion (as at 30 September 2008). Its aim is to enhance its position as a substantial force in the UK financial services market, providing a range of products and services to a broad spread of customers while continuing to deliver good returns. Please visit www.royallondongroup.co.uk for more details.
5. How is the Royal London group performing?
New business results for the first 9 months of 2008 were good in challenging market conditions and confirms Royal London's considerable strengths. It continues to attract profitable new business by focusing on a proven business model, backed by the group's financial strength.
6. What about Financial Strength?
The current Royal London ratings are as follows:
- Standard and Poor's ratings, June 2008: A- (counterparty credit rating)
- Moody's ratings, July 2008: A2
- AKG (overall financial strength) ratings, September 2008: B+
- Fitch Ratings, October 2007: A
Impact of the change
7. What does the acquisition mean for existing clients?
Existing clients do not need to do anything as a result of the acquisition. There are no changes to the benefits or features of their plans. Customer service telephone numbers remain the same. The only difference is that in future correspondence they will see Royal London as the life insurance company rather than Scottish Mutual.
8. What about clients who are in the process of applying for a plan?
Where an application is made before the acquisition and documentation is sent out after the effective date, a leaflet will be included to explain the change of life company. The leaflet will reassure clients that there is no impact on their plan as a result of this change. Now that the effective date has been confirmed as 29 December we will, as a courtesy, be issuing clients already going through the process with a leaflet explaining the position. Click here to view a copy.
9. What about commission and statements?
Your current commission terms remain the same. During a transitional period joint commission payment services will continue and will be provided by Pearl Group Management Services while Royal London and Pearl progress towards separate payments and statements in the new year. Your commission statements will show the Pearl Group logo during this transitional period.
10. Will Terms of Business be impacted?
You already have 'Terms of Business' with us. There is no need for new Terms of Business to be signed as the terms will remain the same. Please note that from 29 December any reference to Scottish Mutual Assurance Limited should, however, be replaced with The Royal London Mutual Insurance Society Limited.
11. Will the product literature change?
Yes, although as the effective date of the change is 29 December just before midnight, we will introduce the revised Scottish Provident material updated to reflect the new ownership on 30 December. Only updated literature should be used from then. Any quotes you receive from all sources (our website, QUOD and Portals) will include the correct literature. Your sales consultant will be happy to arrange further supplies and updated sales aids for you.
12. What about updates to the website?
To allow us to update all our webpages and literature pdfs, www.scottishprovident.com will be unavailable from 6pm on Monday 29 December and is expected to return by 8am on Tuesday 30 December. While we carry out these essential updates, you will be unable to use our online Quote and Apply service. Hopefully this will not cause you too much inconvenience.
13. Will a new QUOD disc be issued?
Yes. The current version of our offline quotes facility (QUOD) v8.06 will expire at midnight on Monday 29 December. Existing QUOD users can update to the latest version (8.07) using the download feature available via the Internet. New users to QUOD or existing users unable to download can request a copy of the new disk by e-mailing: ifasalesline@scotprov.co.uk. Remember you can only update to version 8.07 or download after version 8.06 expires.
14. Who should I contact now at Scottish Provident?
Your sales contact has not changed. In addition, Intermediary Support Centre, Claims Helpline, Underwriting Support are all available in the same way.
15. What about Scottish Mutual and Scottish Provident pensions and investments business?
Pearl Group has retained the closed book of businesses it bought from Resolution and its intention is to rebrand it all to Phoenix in due course. This includes the pensions and investments businesses of Scottish Mutual and Scottish Provident. Some original Scottish Provident protection business has also been retained by Pearl. Click here for a table with more information and contact details.
The future
16. How will it work having 2 protection brands operating in the same market?
Royal London operates a multi brand strategy. When the deal with Pearl was first announced John Deane, Chief Executive of Royal London Intermediary Division said that Bright Grey and Scottish Provident were both strong and successful brands in the protection market. He made it clear that both brands would be retained - each with its own executive team responsible for developing and delivering business plans to secure profitable growth for Royal London. So the message remains the same - it is business as usual for us all. Royal London is confident that both brands can operate successfully side by side - so providing choice and specialist support within the intermediary protection market.
17. What about the future of Scottish Provident?
The Scottish Provident brand will remain. Our commitment to providing you with leading products and services is as strong as ever and in new ownership will continue to go from strength to strength.
