Royal London receives court approval to consolidate with profits funds of previously acquired businesses
Royal London, the UK’s largest mutual life insurer, received court approval on Friday to consolidate three of its closed with profits funds into the Royal London Open Fund. The court decision follows overwhelming approval for the change by policyholders who voted to simplify and improve legacy member benefit earlier this month. The move, which will see policyholders receive uplifts to their policy values, is part of the mutual insurer’s drive to deliver greater and more certain benefits for its with profits policyholders.
The funds are being consolidated using the Court approved Schemes of Arrangement under Part 26 of the Companies Act 2006. The transfer will take place on 31 December this year and members will receive their uplifts at the same time.
Prior to Court approval, Royal London received the following policyholder approvals:
- 92.4% of eligible policyholders in the United Friendly Ordinary Branch (UFOB) Fund who voted endorsed Royal London’s proposals including a 6.4% uplift to their policy value
- 95.4% of eligible policyholders in the United Friendly Industrial Branch (UFIB) Fund who voted endorsed Royal London’s proposals including a 9.7% uplift to their policy value
- 92.5% of eligible policyholders in the Scottish Life Fund who voted endorsed Royal London’s proposals which included a 29.9% uplift to their policy value.
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.