Britannic Assurance is believed to be one of a number groups in takeover talks with Scottish Provide...
Britannic Assurance is believed to be one of a number groups in takeover talks with Scottish Provident.
Scottish Provident has acknowledged it is reviewing its mutual status. The mutual's advantages, valued at between £1.1 and 1.25bn, include its 38% stake in Aberdeen Asset Management and its role in the niche protection market.
Susan Sneddon, group marketing manager at Scottish Provident, said that speculation regarding the future of the mutual was bound to arise once it had stated it was reviewing its mutual status, which concludes at the end of summer. Another group being linked with the mutual is Aegon UK, parent company of Scottish Equitable.
Both Britannic and Aegon have denied that they are involved in talks with Scottish Provident.
Britannic is achieving a degree of organic growth with sales expected to up by 71% this year, according to Schroder Salomon Smith Barney. However, the excess capital in the balance sheet, estimated to be £1bn, is impacting on the new business gains. The management has made a clear commitment to acquisitions.
In 1998 it withdrew from the auction for NPI as it was unwilling to pay over the odds for the group, which was eventually bought by AMP.