Green light for Co-op’s £219m CIS sale

THE Co-operative Group’s £219m sale of its life insurance and asset management business to Royal London has been waved through by regulators.

The deal, which is part of the group’s plan to fill a £1.5bn hole at the Co-op Bank, has been approved by the Prudential Regulation Authority and the Financial Conduct Authority.

It means the sale of the Co-operative Insurance Society business and the Co-operative Asset Management arm should complete at the end of the month.

As a consequence CIS will convert from an industrial and provident society to a limited company and change its name to Royal London (CIS).

Royal London previously said the deal would boost its funds under management by 40% from £50bn to £70bn. However, it is only paying £39m up front with the balance of £180m deferred until certain conditions are met.

The Co-op first revealed its intention to sell the divisions, which employ 170, in July 2011 and has been in talks with Royal London ever since.