Subject to regulatory approvals by the Isle of Man Financial Services Authority, the deal will grow Charles Taylor’s life insurance business in the Isle of Man as it prepares to enter the international fund administration services market.
New fund business
The acquisition of Allied Dunbar International Fund Managers, which manages a collective investment scheme, will allow Charles Taylor to extend its range of professional services by entering the international fund administration services market.
If successful, it will be the fifth life insurance acquisition Charles Taylor has made in the past five years and comes after the purchase of Scottish Widows International in 2015.
Closed book life
The closed book will be reinsured from early 2017 by Charles Taylor’s wholly owned Isle of Man life insurance subsidiary LCL International Life Assurance Company, where much of the book will be transferred.
Jeffrey More, chief executive of Charles Taylor’s Isle of Man Insurance Services, said:
“We have significant experience with acquiring and managing life businesses.
“We will work closely with Zurich to ensure that policyholders experience a seamless change of ownership and continue to enjoy the same excellent levels of service.”
More added that the fund administration services it will now enter with the buyout of the Allied Dunbar business is “closely related to the policy administration service we already offer in the Isle of Man”.
“This opens up opportunities for us to deliver new services to fund managers in the Isle of Man and other international markets.”
David Marock, chief executive of Charles Taylor, said the deal to buy Zurich International’s closed life book is part of the firm’s “well established strategy” to acquire and consolidate life insurance businesses which are primarily in run-off.
“It demonstrates our commitment to further grow our life insurance business in the Isle of Man,” he added.