The acquisition is expected to complete on 30 December 2024.

On completion, Lombard International will become a part of Utmost International, the international life assurance business of Utmost Group.

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 statement said.

Paul Thompson, CEO of Utmost Group plc said: “I am delighted that we are now in a position to complete this transformational acquisition, which represents a major strategic milestone for the Group. This acquisition enhances our geographic footprint, client offering and local market knowledge, strengthening the platform with which to execute on our strategy.

“We have bold strategic ambitions for our business, and I am confident that we are well placed to serve our clients’ long-term financial needs and deliver long-term value to our people and shareholders. I am excited by our future prospects and look forward to welcoming Lombard International’s employees, clients, and partners to Utmost Group.”

Utmost further highlighted that the acquisition will strengthen the group’s client offering by combining the existing distribution partner relationships and complementary product suites. On a combined basis as at 30 June 2024, Utmost International would have had over £100bn of assets under administration and approximately 210,000 policyholders.

Following the completion, Utmost will commence the integration of Lombard International into Utmost. 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.

On completion, the group’s capital strength will remain strong, the statement said: “Utmost will continue to operate with financial discipline, maintaining balance sheet resilience and flexibility, while remaining focused on delivering growth and operational efficiency. Fitch Ratings have confirmed an expected IFS rating of ‘A+’ for Lombard International, subject to the completion of the acquisition. This rating is in line with Utmost Group’s other rated insurance entities.”

Strong growth saw VNB grow by 19% from HY 2023 to £25m, “following increase in VNB margin and reflecting ongoing focus on quality”, the international life and financial services business said in the half year 2024 results to 30 June 2024.

Assets under Administration remained strong, with a 3% increase to £64.7bn from FY 2023, supported by positive market movements.

The period also saw a rating upgrade to the Group’s Issuer Default Rating (IDR) and Insurer Financial Strength (IFS) Ratings from ‘A-‘ to ‘A’ and ‘A’ to ‘A+’ respectively, plus robust Group Solvency Coverage Ratio of 209% at 30 June 2024.

Utmost Group CEO Paul Thompson (pictured) said: “In the first half of 2024 we have continued to drive forward with our growth ambition to establish Utmost as a leading provider of insurance and savings solutions. We have made strides in delivering our strategic ambitions, with the announcement of the proposed acquisition of Lombard International, whilst building the strong foundations needed to be a long-term partner to our clients.

“Market conditions continue to present challenges with positive macroeconomic data dampened by the ongoing global political uncertainty. Despite this, we recorded growth in our AUA and VNB, reflecting our ongoing commitment to writing profitable new business.

“Our organisation is in a strong position and as I look ahead, I am confident that we will continue to execute on our strategic intent.”