Royal London is set to acquire a 30% stake in later life lending and product specialists Responsible Life and Responsible Lending (Responsible Group).
The completion of the deal is subject to regulatory approval.
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The transaction builds on an existing partnership between the two companies launched last year when Royal London and Responsible Group rolled out a jointly branded later life lending service.
With this acquisition, Royal London seeks to bolster its footprint in later life lending market, which is said to have significant growth potentiality in future.
Royal London Group CEO Barry O’Dwyer said: “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products.
“We believe that later life lending will become a core part of financial planning. Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported.
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By GlobalData“Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.”
Responsible Group executive chairman Steve Wilkie said: “The investment from Royal London is another exciting chapter in our company’s growth story as we continue to be at the vanguard of the development of the later life lending sector, improving products, and breaking down barriers for customers.
“We share common values and a commitment to working with our industry colleagues and the financial adviser community to offer broader participation in this sector.”
With assets under management of £148bn, Royal London is the largest mutual life insurance, pensions and investment company in the UK.
Earlier this month, the company agreed to acquire Wealth Wizards, a financial guidance and advice provider.
