Insurer Royal London has sold its platform business Ascentric to investment manager M&G plc (M&G).
The sale follows the completion of Bath-based Ascentric’s re-platforming in 2019 and the conclusion of a comprehensive strategic review led by Royal London鈥檚 CEO Barry O’Dwyer.
Ascentric, which Royal London acquired a majority holding of in 2007, is a digital wrap and wealth management platform for advisers with assets under administration of 拢14bn, around 1,500 adviser relationships and over 90,000 underlying customers.
It became a wholly owned subsidiary of Royal London in 2014, and as of March this year had 拢14bn assets under administration (unaudited).
O’Dwyer said the sale was part of a strategic review.
鈥淭he business has been performing well following its re-platforming and we sought an outcome that would take it to its next phase of growth,鈥� he said.
鈥淲e believe that a sale to M&G delivers this for Ascentric and I am pleased to have found a buyer who has a strong commitment to Ascentric’s client and customer base and who is looking to further grow the business. I would like to thank the Ascentric team for their contribution to building a valuable business over the past years.
“At Royal London we still remain firmly committed to the adviser market as we drive through a major digital transformation programme and develop new capabilities to help advisers better meet the needs of their customers.”
Rob Regan, CEO of Ascentric called the deal 鈥渃ompelling.鈥�
鈥淚t is very clear that M&G is aligned with our values and ethos and represents a good home for our advisers, strategic partners and staff,鈥� said Regan.
鈥淢&G is well-placed to take us on the next stage of our journey leveraging its scale to grow the business. We look forward to working with M&G to support our clients and customers going forward as well as through the transition from Royal London’s ownership.”
The deal is subject to regulatory approval.