Zurich UK is selling its retail wealth unit to zero in on its core offering, which is protection.
Without disclosing financial terms of the deal, Zurich UK said it has entered into an agreement with Embark Group for the sale. In its announcement, the insurer pointed to the move as being consistent to Zurich UK’s commitment to concentrate investment on its retail and group protection franchise.
“This is an excellent outcome for all parties,” stated Jim Sykes, Zurich’s head of UK life. “Although our wealth platform is a strong and successful business, we believe the needs of customers and advisers would be better served by an owner that is focused on investing in this specialist area.
“Embark is ideally placed to take the platform to the next stage in its development. In turn, this allows us to focus our resources on our protection business where we see the greatest growth opportunities.”
Meanwhile Embark Group chief executive Phil Smith described the purchase as “perfectly aligned” with their growth strategy. In addition, it establishes Embark as a significant player in the UK retirement and savings market.
The transaction spans investment and retail wealth platform business Sterling ISA Managers Limited as well as authorised corporate director and investment management company Zurich Investment Services (UK) Limited.
Under a Transfer of Undertakings (Protection of Employment) arrangement, approximately 110 Zurich UK employees are expected to transfer to Embark Group as part of the acquisition, which is expected to close in the second quarter of next year.
