Scottish Friendly to acquire in-payment books of business from Fidelity International
Assets Under Management increase by £2.16bn to over £6.3bn
The acquisition will support our successful ProfitShare initiative where eligible members participate in profits made by Scottish Friendly
Scottish Friendly, one of the UK’s leading financial mutuals, today announces the acquisition of pension and annuity in payment books of business from Fidelity International.
The acquisition consists of a block of unit-linked Section 32 pensions business comprising £2.16bn Assets Under Management (AUM) across 76 originating schemes and covering c40,000 policyholders, and an in-payment annuities book with £6.6m liabilities and c1,000 annuitants as at 31 December 2024.
The deal, subject to regulatory approval, will see Scottish Friendly’s assets under management increase to over £6.3bn and is expected to complete by the end of September 2026. Under its terms, members of the Section 32 business will remain part of FutureWise, Fidelity International’s default investment strategy for UK-based workplace pension schemes, for the next 20 years.
Scottish Friendly has a long and well-established history of acquiring large books of insurance business, the largest of which was in 2019 with the acquisition of blocks of life and pensions business from Canada Life. Today’s announcement further strengthens the pension capability of the mutual.
Stephen McGee, Chief Executive of Scottish Friendly, said: “This is a significant acquisition for Scottish Friendly, growing our business and offering long-term value for our eligible members through our ProfitShare initiative.
“We are committed to helping our customers and their families achieve financial wellbeing through friendly products and customer care. For customers transferring to us, we will ensure they receive the service and support they need during this period and beyond.
“I am delighted that Fidelity International has chosen Scottish Friendly as a credible partner and has entrusted us with its customers. Winning the tender process is a significant achievement and I look forward to welcoming customers to Scottish Friendly when the deal completes.”
Stuart Warner, Head of Global Platform Solutions, Fidelity International, said: “We are committed to improving our Workplace Investing operating model, with the aim of delivering the best possible customer experience and retirement outcomes for our clients and members. The acquisition of our Section 32 pensions business by Scottish Friendly will support the delivery of this strategy.
“Scottish Friendly has significant experience in acquisitions such as these, and we look forward to working closely with them to support members through this transition. Members will remain invested in FutureWise, our leading default investment strategy, and continue to benefit from its development over years to come.”
-ENDS-
Contact:
Kevin Brown, PR & Communications Manager
07512194336
Emma Beresford, Corporate Communications
0207 961 4526
Editor’s notes:
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides its members and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.
About Fidelity International
Fidelity International offers investment solutions and services and retirement expertise to more than 2.8 million customers globally. As a privately held, purpose-driven company with a 50-year heritage, we think generationally and invest for the long term. Operating in more than 25 locations and with $893.2 billion in total assets, our clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers, and wealth managers, to private individuals.
Our Global Platform solutions business provides individuals, advisers and employers with access to world-class investment choices, third-party solutions, administration services and pension guidance. Together with our Investment Solutions & Services business, we invest $625.5 billion on behalf of our clients. By combining our asset management expertise with our solutions for workplace and personal investing, we work together to build better financial futures. Data as of 31 December 2024. Read more at fidelityinternational.com.