Royal Liver agrees takeover by Royal London

THE takeover of Liverpool insurer Royal Liver by mutual insurer Royal London, Britain’s largest mutual life and pensions company, could happen within weeks.

In a statement to the stock market yesterday Royal London said a transfer agreement had been signed setting out the terms and conditions of the potential transfer of Royal Liver’s assets and liabilities to Royal London.

The transfer is subject to regulatory approvals and the approval of Royal Liver’s delegates – who represent its members – at an annual general meeting in Liverpool next month.

“A further announcement will be made when appropriate,” added Royal London.

The company is based in Liverpool’s landmark Liver Building, where it employs 500 people. It has been hit hard by the recession and has been undergoing a restructuring since last year as it bids to cut losses.

At Royal Liver’s annual general meeting in Cardiff last year, delegates were told by chairman David Woods that the takeover would be in the interests of policy holders.

Royal Liver, with 1.5 million members, is different from other mutuals because all member power is entrusted to a 200-strong committee of elected members. A deal can only take place with Royal London if 75% of Royal Liver’s members vote for it.