Takeover
In 2007, Royal London approached Royal Liver about a possible combination of their businesses, but Royal Liver decided to remain as an independent entity.
Since then, however, the financial downturn hit the insurance industry hard. The FSA launched Project Chrysalis, aimed at mutual insurance companies. Companies were asked to hold more capital, and to either stop writing new policies, or justify that continuing selling new business wouldn't put existing policyholders at a disadvantage. At the time, it was anticpated that several mutuals would merge due to lack of capital.
Royal Liver were approached by LV in October 2009, however talks broke down.
Royal Liver were then approached again by Royal London in February 2010. Talks continued for some time, and the board of Royal Liver agreed the terms of a potential merger in April 2011. The delegates of Royal Liver voted in favour of the merger at the AGM on 12 May 2011. Subject to approval from the FSA, the transfer to Royal London will be completed on 1 July 2011.
Read more about this topic: Royal Liver Assurance
Famous quotes containing the word takeover:
“A poet is a combination of an instrument and a human being in one person, with the former gradually taking over the latter. The sensation of this takeover is responsible for timbre; the realization of it, for destiny.”
—Joseph Brodsky (b. 1940)