QUILTER PLC - Quilter announces the sale of Quilter Life Assurance to ReAssure for 425m

Quilter announces the sale of Quilter Life Assurance to ReAssure for £425m

QUILTER PLC
(previously, Old Mutual Wealth Management Limited)
Incorporated under the Companies Act 1985 with registered number 06404270 and re-registered as a public limited
company under the Companies Act 2006)
ISIN CODE: GB00BDCXV269
JSE SHARE CODE: QLT
Quilter plc (the "Company")



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO
OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

5 August 2019

    Quilter plc (“Quilter”) announces the sale of Quilter Life Assurance to ReAssure for
                                           £425m


-        Following the strategic review, announced on 4 July 2019, Quilter and ReAssure are
         pleased to announce they have entered into an agreement for ReAssure to acquire
         Quilter’s heritage life and pensions division, Old Mutual Wealth Life Assurance Limited
         (“Quilter Life Assurance”) (the "Transaction").

-        Under the terms of the Transaction, Quilter plc is expected to receive:

                                                  £425m, in cash.

-        The sale of Quilter Life Assurance will further act to solidify Quilter’s position as an
         advice led, modern wealth manager.

-        The Transaction realises an attractive valuation for Quilter Life Assurance,
         strengthening the Group’s financial position.

-        Consistent with its disciplined capital management policy, and in line with previous
         disposals, the Board currently expects to return a meaningful proportion of the net
         sale proceeds, after allowance for the costs of the Transaction, potential onerous
         contracts and capital requirements of Quilter following the Transaction.

-        Quilter will update on the amount and method of distribution at the closing of the
         transaction, expected to be late 2019.
-       The growth profile of the Group following the sale is expected to be enhanced since
        Quilter Life Assurance is in run-off. Further benefits of the Transaction include
        increased focus on the delivery of Quilter’s growth strategy and the execution of its
        optimisation initiatives.

-       ReAssure is a leading closed life book consolidator focused on managing legacy life
        insurance products. They are a customer oriented organisation with a strong focus
        on delivering good policyholder outcomes and have a track record of high customer
        satisfaction.

-       The Transaction is subject to receiving regulatory approvals from the PRA.



Commenting on the Transaction, Paul Feeney, Chief Executive Officer of Quilter, said:

"I am delighted we have agreed to sell Quilter Life Assurance to ReAssure. ReAssure is a
highly regarded manager of closed book assets and has the experience to deliver continued
high quality investment and administration services to clients of Quilter Life Assurance. The
Quilter Board is currently minded to return a meaningful proportion of the net surplus
proceeds arising from the transaction to shareholders and will consult with them on the
most appropriate means of undertaking this."

Further information on Quilter Life Assurance

Quilter Life Assurance, a wholly owned subsidiary of Quilter, is a substantially closed book of
unit-linked policies. Formerly the core of Quilter’s UK business, Quilter Life Assurance
consists of pensions, investment and savings, and protection products with both Retail and
Institutional offerings. Quilter Life Assurance key financials include:

    -   Proforma MCEV: £406 million at end 2018 after dividend payments made in 2019 of
        £130 million.

    -   Proforma own funds of £354 million at end 2018 after dividend payments made in
        2019 of £130 million.

    -   Gross assets: £12,324 million at end June 2019.

    -   Operating PBT: £26 million for the six months to end June 2019.


All current Quilter Executive Committee members will remain with Quilter post transaction.



Enquiries:

 Quilter
 John-Paul Crutchley - Head of Investor Relations                 Tel: +44 (0) 20 7002 7016

 Jane Goodland - Corporate Affairs Director                       Tel: +44 (0)77 9001 2066

 Tim Skelton-Smith – Corporate Affairs                            Tel: +44 (0)78 2414 5076

 ReAssure

 Laura Doyle - Head of Investor Relations                         Tel: +44 (0) 20 7039 9199




About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping
to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.4 billion in investments (as at 30 June 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms;
multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth
Platforms.

Advice and Wealth Management encompasses the financial planning network, Quilter
Financial Planning; Quilter Private Client Advisers; the discretionary fund management
business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions
business. Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual
International, including AAM Advisory in Singapore; and Old Mutual Wealth Life Assurance,
the Heritage life assurance business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately
two years:

• The Multi-asset business is now Quilter Investors
• Intrinsic is now Quilter Financial Planning
• The private client advisers business is now Quilter Private Client Advisers
• The UK Platform to Quilter Wealth Solutions
• The International business to Quilter International
• The Heritage life assurance business to Quilter Life Assurance
• Quilter Cheviot will retain its name.


JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

Date: 05/08/2019 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.