Naysayers were proven wrong after it was confirmed this morning that the acquisition of Friends Provident International (FPI) by RL360’s parent company, International Financial Group Limited (IFGL), has been finalised.
It was nearly three years ago to the day that RL360 chief executive David Kneeshaw spoke with International Adviser about the “game changer” deal.
In the interview above, he talks to IA about the hurdles the deal had to overcome, what the acquisition means for advisers, and how the two businesses will work together.
Changed structure
The revised deal sees FPI parent Aviva part with 76% of the firm for £259m ($326.2m, €285.7m), of which £209m is in cash and £50m in deferred cash considerations.
Aviva has entered into a shareholders’ agreement, under which it has certain ongoing commitments and customary rights.
This marks a change from the original agreement, which would have seen the UK-headquartered insurer hand over 100% of FPI for £340m. The deal was restructured following concerns raised by the Hong Kong regulator.
FPI will continue to serve customers, partners and intermediaries. There is no change to customers’ policies as a result of the sale.
Integration
Kneeshaw commented: “I am delighted that the acquisition has completed and we can now focus on our exciting plans for FPI and IFGL. I believe strongly the deal will benefit FPI’s policyholders, financial advisers and staff.
“While integrating FPI into IFGL will be a key priority over the coming months, our growth strategy remains unchanged. We will continue to look for opportunities to grow both organically and through further acquisition.
“We will be announcing our exciting plans for IFGL over the coming weeks,” he added.
IFGL comprises RL360, RL360 Services, Ardan International and now Friends Provident International.
