The transaction, which closed on 31 December 2015, provides for the continuation of service support by Old Mutual for the OMB products over the next three years, supplemented by additional support from Beechwood’s growing wealth management business. OMB closed for new business in 2009.
As part of the arrangement, Old Mutual will reinsure certain policy guarantees until they mature in 2017 and 2018. Given the continuity of resources, no disruption to client service is anticipated.
The deal means Beechwood now has over $2bn (£1.4bn, €1.8bn) in total assets and is featured on the platforms of over 100 banks and brokerage firms around the world.
“This transaction offers a unique opportunity to strengthen our position as a global leader and demonstrates our dedication to providing innovative financial solutions for international investors,” said Mark Feuer, chief executive of Beechwood.
New product offering
Beechwood said that over the coming weeks it would be contacting OMB’s distribution partners to discuss the transition and introduce the firm’s Accumulator Plus and Escalator Plus investment plans, which offer features such as principal protection guarantees.
David Lessing, executive vice president of products and services at Beechwood, said growing client demand for the Beechwood products had reinforced its decision to make a significant commitment to this business in support of its distribution partners and their financial advisors.”
Financial terms of the transaction were not disclosed. Certain regulatory approvals for the transfer of future policy administration arrangements are expected by the end of Q1 2016.