Independent financial advisory firm acquired for £385m
Aviva has acquired Birmingham independent financial advice firm Succession Wealth for a consideration of £385m.
With approximately 200 planners advising on £9.5bn of assets and delivering high-quality advice to around 19,000 clients throughout the UK, Succession Wealth will continue to operate as a separately regulated, independent, financial advisory firm and will continue to use the Succession Wealth brand.
Aviva however through Succession Wealth, will have the capability to offer advice to its 4m workplace pension customers with £96bn of assets under management as well as 2m individual pensions and saving customers with £139bn of assets under management and focus on customers who currently don’t have an advisor.
Amanda Blanc, group chief executive officer of Aviva, said: “The acquisition of Succession Wealth boosts Aviva’s presence in the fast-growing UK wealth market; supports our strategy to grow sustainably, and expands Aviva’s ability to offer high-quality financial advice to millions of our customers.”
The addition of an advice offering will allow Aviva to better support its customers as they go through critical life decisions, helping to retain more of the £6bn of pension and heritage assets that leave to be invested with competitors each year.
Aviva will also provide Succession Wealth with a complete set of solutions to supports planners in serving their existing clients.
Succession Wealth’s CEO James Stevenson will continue to run the business, with the ability to accelerate growth through participating in further consolidation and from the support and substantial benefits of being part of Aviva.
The transaction, which is being funded by cash from Aviva’s strong capital position, is expected to deliver a double-digit return on invested capital. Its completion is subject to FCA approval and is expected to complete in the second half of 2022.
Doug Brown, Chief Executive Officer of Aviva UK and Ireland Life, said: “Succession Wealth has built a great business over the years, and I am confident that Aviva’s scale, resources, capabilities and shared vision will enable Succession Wealth to further expand its leading client and planner proposition in the UK’s attractive wealth market.
“This acquisition will broaden our advice offering and will help our existing customers currently without an adviser to better secure their financial future.”
James Stevenson, Group CEO of Succession Wealth, said: “We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don’t have an adviser.
“The demand for financial advice across the entire wealth spectrum has never been greater, and the opportunity to combine Succession Wealth’s holistic financial planning expertise, with the capabilities and customer reach of Aviva is hugely exciting.
“The Succession Wealth brand and our core independent advice proposition is fundamental in providing ongoing stability and reassurance to our existing clients and our people as we embark on this new journey as part of Aviva.”
