In a statement on 4 July, Utmost said the acquisition “brings together two large-scale insurance-based wealth solutions businesses, strengthening Utmost’s position in key European markets and providing a strong platform to serve its clients’ long-term financial needs”.

The two businesses had “closely aligned operating models and a shared commitment to serving our clients’ long-term financial needs. By combining the existing distribution partner relationships, deep local market knowledge and a complementary product suite, the Acquisition provides a strong platform for the Group to serve its clients and execute on its strategic ambitions”.

The deal adds £43bn of assets under administration and over 20,000 policies to Utmost International. On a combined basis at YE 2023, Utmost International would have had £100bn of assets under administration and over 210,000 policies, and would have written £6.4bn of new business.

Lombard International will continue to operate from Luxembourg with its existing suite of products. These will be distributed under the Utmost brand by a single combined global salesforce in parallel with Utmost’s existing products, maintaining the combined group’s existing distribution models.

The increased scale achieved through the acquisition will enable the Group to identify opportunities for efficiencies and capital synergies, focusing on leveraging the complementary capabilities of the combined entity to deliver value creation for stakeholders.
– Maintains balance sheet strength, resilience, and flexibility:

On a proforma basis, had the transaction completed on 31 December 2023, the group would have had: An increase in Gross Solvency II EV from £2,386 to £3,150m; A group Solvency Capital Requirement (SCR) Coverage Ratio of 173%, and; A group leverage ratio of 29%, within its 20-30% target range.

The total consideration will be financed through a £200m bank loan, with the remainder covered by existing cash reserves.

Subject to regulatory approvals, the acquisition is expected to complete by the end of 2024.

Paul Thompson (pictured), CEO of Utmost Group said: “The acquisition of Lombard International marks an exciting milestone in Utmost’s journey, fortifying our European position and establishing us as a leading global provider of insurance-based wealth solutions. The combined strength of the merged Utmost International and Lombard International gives added scale to the Group. It will enable us to better serve our expanded international client base and distribution partners, utilising deep market insights, strong technical expertise and a broader portfolio of products.

“The addition of Lombard International is highly complementary to Utmost’s previous transaction – the acquisition of Quilter International completed in November 2021 – which strengthened our presence in the UK and Asia. Lombard International’s  established, long-standing networks in Europe will enhance Utmost’s global credentials and enable us to better serve our clients and partners, delivering long-term value for our people and shareholders.

“I look forward to welcoming Lombard International’s people, clients and partners to Utmost and to working closely with the Lombard International leadership on completing this transaction.”

Simultaneously, Fitch has upgraded the Group’s Long-Term Issuer Default Rating (IDR) to ‘A’ from ‘A-’. Both IFS and IDR outlooks are Stable.

The Group’s Restricted Tier 1 and Tier 2 notes have been upgraded from ‘BBB-‘ to ‘BBB’.

In a statement, Utmost said: “The upgrade reflects the Group’s strong financial strength and improved business risk profile following the completion of the Quilter International integration.

“Fitch’s assessment highlighted the strong operating performance and scale of the Group as a leading business franchise in the international life and savings market, underpinned by an ‘Extremely Strong’ capital and leverage position.”

In its report Fitch said: “The group has an established record of adequately managing execution risks associated with integrating acquired businesses. Acquisitions of international and investment bond businesses from several European insurance groups, and closed books in the UK have supported the notable improvement in the group’s operating scale over the past few years.

“Fitch expects the group’s planned entry into the UK bulk annuity market to provide diversification and scale benefits, although it believes that these will likely be realised more gradually over the medium to long term.”

Fitch also drilled down into how Utmost Group has a leading business franchise in the international life and savings market, focusing on servicing affluent, high-net-worth and ultra-high-net-worth individuals.

“It is the market leader in this segment, with total assets under administration (AUA) of GBP62.8 billion at end-2023, up from GBP60.1 billion at end-2022. The increase was mainly supported by favourable market value movements but partly offset by GBP0.6 billion net outflows during the year due to challenging macroeconomic conditions. Fitch expects net flows to remain volatile in the near to medium term as clients remain selective in investing in a volatile investment climate.

“The group also provides employee benefits insurance to multi-national corporates through Utmost Corporate Solutions and has acquired closed life insurance books in the UK through its Utmost Life and Pensions subsidiary. The group’s intended entry into the UK bulk annuity market will be through Utmost Life and Pensions.”

Fitch’s full report can be read here.

The indexed UL plan offers customers lifelong coverage against death and terminal illness, and can maximise the growth potential of their wealth for future generations while protecting it from market downturns, it said in a statement today (3 June).

That is because unlike other plans in the market, the growth potential is tied to the uncapped performance of the S&P 500 Fast Convergence Index. At the same time, customers are protected with a floor rate of 0% for the index account, which means that the index account will not lose value due to negative market returns. Customers also enjoy a crediting rate of 4.5% pa for their fixed account in the first year.

The HNW segment in Singapore has been growing steadily in recent years, and the proportion of millionaires in Singapore is expected to rise from 7.5% in 2021 to 13.4% by 2030. By then, the proportion of millionaires in Singapore will be higher than that of the US, China, and other economies in Asia Pacific.

PVLI is the latest addition to Prudential’s suite of insurance plans that meet the needs of the growing HNW population.

Goh Theng Kiat, chief customer officer of Prudential Singapore, said that with increasing lifespans and affluence, there is also a growing need for more protection and legacy planning.

“High net worth individuals are looking for insurance solutions that go beyond basic protection and require plans that are tailored to securing their wealth and building a lasting legacy that can be passed on to future generations. PRUVantage Legacy Index is an insurance plan designed for this purpose, offering long-term coverage and growth potential for their legacy.”

PVLI is a single premium indexed UL insurance plan that offers a high death and terminal illness coverage. The policy works on a dual account structure – a fixed account and an index account that is benchmarked against the S&P 500 Fast Convergence (FC) Index. This index dynamically adjusts its allocation several times a day based on volatility observations from the market, stabilising returns during market downturns.

The key benefits of PVLI include:
• Lifelong protection with high death and terminal illness coverage.
• Maximised growth potential: Customers can access high-growth potential that is linked to the uncapped returns of the S&P 500 FC Index, allowing them to reap the full benefit of market upsides.
• Steady growth on fixed account: The fixed account enjoys a first year crediting rate of 4.5% p.a. and guaranteed minimum crediting rate of 2.0% p.a.
• Protection from market downturns: A lifetime floor rate of 0% for the index account and a minimum crediting rate of 2.0% p.a
• Customise premium allocation between fixed account and index account as financial needs and risk appetites evolve. Customers have the option to change allocations every year after the first policy year.
• Loyalty crediting rate of 0.35% p.a. on the fixed account from the 11th year onwards.

There is a minimum sum assured of US$500,000.

A former Team GB rower, she joined John Lamb Hill Oldridge in 2022 and has excelled in her role within the Estates team.

In 2022 she took home bronze in the Financial Advisory Individual of the Year category at the Citywealth Future Leader Awards and, a year later, won silver in the Private Investment/Family Office/UHNW services Individual of the Year category.

Hill (pictured) focuses on advising the firm’s landed and property estate clients, resolving the issues that arise when placing significant life cover policies in both the UK and international markets.

Alex Gibson-Watt, managing director at John Lamb Hill Oldridge, said: “Since joining us in 2022, Holly has proved to be a fantastic addition to our Estates team.

“With a keen understanding of estate management, her advice covers all aspects of a client’s insurance requirements with a specific focus on Inheritance Tax planning.

“This new position will allow Holly to join our leadership team, and we’re excited to see her continued progression within the firm. Congratulations, Holly, this is very well deserved!”

Before joining John Lamb Hill Oldridge, Holly was a graduate of the GB Rowing Start programme, first pulling on a Team GB vest in 2015.

After helping Cambridge to win the University Boat Race in 2017, she won a European Silver Medal in 2018, a Bronze World Cup Medal in 2019, and was selected for the Tokyo Olympics in 2020, before Covid sadly caused her to miss out on the 2021 Games.

In addition, Hill holds a Diploma in Regulated Financial Planning, has a degree from Downing College, Cambridge in Human, Social and Political Sciences and is currently working towards becoming STEP-qualified.

She said: “I’m thrilled and excited to be joining the leadership team here at John Lamb Hill Oldridge. Our Estates team is thriving and I’m looking forward to exploring where we can further develop our support for the private client world”.

“Rowing gave me some fantastic skills that I have been able to transfer to the world of financial services. From prioritising communication and team work to being resilient in the face of challenge, the lessons I learnt from sport have certainly helped me in my career so far.

The new offering will cover investigation and treatment services for cancer, heart, and neurological conditions, including cover for treatment abroad at leading hospitals.

Accelerate can be added to any new Zurich Life, Critical Illness or Income Protection Policy at the point of sale or at any point during the life of the policy and can be cancelled at any time, allowing advisers to meet the ongoing and changing needs of their customers.

The offering is designed to provide customers with more choice and control over their healthcare decisions. It provides access to experts from around the world to offer wider choice, with fast access to consultations, diagnostics, and second medical opinions.
Accelerate can also help customers access the latest precision cancer medicine and cancer clinical trials.

Customers will have flexibility when it comes to using any of the six services Zurich Accelerate offers. They can choose which services to use and when, with the option to combine them with public or private healthcare, offering them greater control over their healthcare decisions.

Zurich Accelerate is a complimentary service to both public and private healthcare and is not intended to replace either. It gives customers an alternative route and should be taken up in consultation with their GP.

Sam Wells, head of proposition innovation said: “From my own personal experience, I have seen the challenges that you face when dealing with a cancer diagnosis and how important it is to be supported through a complex journey that can last years, spanning investigations, diagnosis, and treatment. Each service available with Accelerate has been designed around the experience my family had to provide our customers with fast access, choice, and control, through a complete service rather than a piecemeal solution.”

Customers who access the service will be guided through the entire process by a dedicated, clinically trained case manager. Policyholder’s children will also be automatically covered from birth up to their 22nd birthday.

Zurich will also launch a radio advert in June encouraging people to contact their financial advisers to discuss Zurich Accelerate. The nation-wide broadcast will be one of the only adverts from an insurer that encourages customers to speak to an adviser, demonstrating Zurich’s full commitment to the intermediary market. Customers can also find an adviser via Zurich’s website if they don’t already have one.

Louise Colley, director of Retail Protection at Zurich Insurance, said: “Serious illnesses have been on the rise over the last decade with a 50% increase in heart disease and one in two people receiving a cancer diagnosis during their lifetime.

“Accelerate provides a suite of options to those suffering symptoms by allowing them access to fast diagnoses and giving them access to leading treatment as quickly as possible. We’re incredibly proud that this new offering fills a gap in the market with a comprehensive solution covering investigation, diagnosis, and treatment.”

Accelerate’s six services consist of:

Virtual Consultant
Customers with a GP referral gain access to a virtual consultation with a leading UK consultant at a date and time that suits them. They have access to extensive information on each consultant to help them choose which specialist is right for them.

Multiple people can attend the virtual consultation, including other doctors or family members, with a summary report being produced after the meeting detailing the next steps.

Private Diagnostics Plus
To help get a faster diagnosis, customers can choose a suitable private diagnostics centre in the UK to get the right tests carried out quickly. This will be followed by an appointment with a consultant to discuss the results.

Second Medical Opinion
For those that are unsure about a diagnosis, customers can ask for a second medical opinion. A leading consultant will give them a comprehensive review of their current medical evidence, diagnosis, and treatment plan and, if appropriate, will suggest other investigations or treatment options that may help them.

Precision Cancer Medicine
Customers who receive a qualifying cancer diagnosis get fast access to a personalised treatment plan based on their specific type and cause of cancer.

This benefit consists of a wide range of services that help tailor treatment for each customer using the latest tumour profiling technology.

If the cancer has a hereditary or genetic component, customer’s siblings and children are also eligible for testing and counselling.
Cancer Clinical Trial Support

If customers with a cancer diagnosis decide it is right for them, Accelerate can help them to access one of the hundreds of thousands of clinical trials taking place overseas. This may give them access to new or alternative treatments, drugs and therapies that may not yet be available to everyone.

Accelerate covers the cost of travel and accommodation during this time, as well as a daily allowance for customers and their travel companions.

Global Treatment Plus

Global Treatment Plus offers customers the option to be treated at some of the world’s leading hospitals and facilities, potentially giving access to treatments that might not be offered through public healthcare in the UK.

Accelerate covers the cost of treatment, travel and accommodation as well as a daily allowance for customers and their travel companions, (this element offers a potential total payout of double that which exists in the market today), as well as in country follow up care and continuing medication expenses of £100,000.