The purchase builds on the firm’s 40% stake in the Responsible Group and will enable Royal London to deliver later life solutions and scale the provision of later life lending.

Barry O’Dwyer, chief executive at Royal London, said: “This transaction strengthens our support for advisers and customers as they look for solutions in funding later life needs. We believe this market has a lot of potential as it offers customers additional choices at retirement, especially those who have property wealth but insufficient pension savings to support their desired standard of living.

“Later life lending is complex by nature and requires specialist advice. Royal London is keen to play a role in ensuring high quality advice is an accessible option for those who would benefit from accessing the equity in their home.”

To read more on this topic, visit: Royal London makes senior hire as it eyes up private markets

Carlton Hood, chief executive for the Responsible Group, added: “We will work with colleagues at Royal London to bring the consideration of pension wealth and property wealth together for advisers and clients, and to ensure the advisers we support, and the customers they serve, are able to access the best range of later life lending solutions for their retirement needs.”

According to the Financial Conduct Authority (FCA) the insurance firm Core Cover Ltd has not been authorised since October 2022.

Companies House filings show the company was dissolved in June 2023.

The FSCS told International Adviser that it has received one claim so far about the firm relating to life insurance which has been upheld.

Core Cover Ltd has previously been known as Study Safe Ltd, Lifecover.com, Secured-Loan.online, Health Core PMI and acceptedmoney.co.uk.

See also: Two UK-based firms fail

Second failed firm

Investment firm Cavendish Incorporated Limited is in liquidation according to Companies House.

While the firm is still authorised by the FCA it has been closed to regulated business since August 2021.

The FSCS told IA it has received seven claims so far relating to investment advice with one of the claims being upheld and the rest still in progress.

Third failed firm

Investment firm Marvell Enterprises Ltd is also in liquidation Companies House has reported.

The business is also closed to regulated business according to the FCA and has been since November 2021.

The FSCS told IA that it has received 11 claims against the firm relating to investment advice and bonds with one claim being upheld and the rest in progress.

Two thirds (66%) of respondents said that reform of legislation, including the Solvency II directive, supports greater allocation to a wider range of secure-income assets. One third (33%) said the reforms will have no impact on allocation and 1% said that the changes would not be supportive.

The research showed nearly half (48%) of the insurers surveyed classify secure-income assets as alternatives; 44% describe them as real estate; and 8% categorise these as alternative credit.

See also: 90% of cross-border life sector believe tech is crucial to industry

When investing in secure-income assets, 66% of respondents said they select AA-rated instruments; 49% choose A rated; 26% cited BBB grade; and 7% referred to BB. Nearly all (98%) European life insurers said they had been successful in integrating secure-income assets within a matching portfolio.

When asked about the impact of regulatory reforms on European life insurers’ investments in private markets, 88% said these would be supportive of allocations, while 12% said they will have no bearing.

The life-insurance companies surveyed typically focus their private-market allocation on Europe, the research found. Almost half (47%) invest Europe-wide with a home-country bias; 33% invest Europe-wide; 17% invest solely in their home country; and 3% have a global allocation.

Boris Mikhailov, head of client solutions at AlphaReal, said: “Since Solvency II came into force in 2016, insurers have been limited in their ability to hold long-term equity instruments.

“This is at odds with the European Union’s goal to drive investment in long-term, sustainable-investment projects and stifles life insurers’ ability to diversify across different asset classes including private markets, and secure long-term income funds that are well-suited to matching their liabilities.

“We welcome any reform that gives insurance companies the opportunity to invest strategically in these assets.”

See also: Canada Life to revamp UK operation

Ed Palmer, AlphaReal’s co-deputy chief executive and chief investment officer, added: “Insurance companies can provide the finance which is so critical in supporting growth in the real economy, by investing in sustainable infrastructure, real estate and other projects that will drive the green transition in Europe.

“It is clear from our research that life insurers acknowledge the importance of revising the qualifying criteria for secure long-income and private assets.”