Under the transaction, Royal London will initially hold CIS and TCAM as subsidiaries and will maintain the CIS Long Term Business Fund for the benefit of CIS with-profits policyholders, which is consistent with how it manages other funds within its Group.

Royal London said that CIS policyholders will enter into the Group, which as a consequence will see its funds under management increase from approximately GBP50bn to circa GBP70bn and its customer base will increase from 4m to 6m.

Upon completion, Royal London will provide policy administration services, asset management services and governance under an agreed expenses arrangement with the CIS Fund.

Commenting on the agreement, Co-operative Banking CEO, Barry Tootell, said: "The transfer of our life assurance and asset management businesses to Royal London will ensure the continued protection of our policyholders, within a strong, mutual business with the necessary scale and focus on the long-term savings sector."

Royal London CEO, Phil Loney, said: "The increased scale of our asset management operations and introduction of over two million new customers will enable us to develop further efficiencies to support our profitability in the coming years and contribute towards future bonuses and further mutual dividends for our members. Our asset management offerings will also be enhanced, particularly in the area of Socially Responsible Funds."