Legal & General Group Plc L&G Enters Lifetime Mortgage Market (4273E)
09 Februar 2015 - 1:57PM
UK Regulatory
TIDMLGEN
RNS Number : 4273E
Legal & General Group Plc
09 February 2015
LEGAL & GENERAL TO ENTER THE LIFETIME MORTGAGE MARKET BY
ACQUIRING NEW LIFE HOME FINANCE LIMITED
Legal & General Group Plc, ("Legal & General") has
agreed to acquire 100% of New Life Home Finance Limited ("Newlife")
for a consideration of GBP5m. Newlife is a privately owned UK-based
provider of lifetime mortgage products. The acquisition by Legal
& General's Retirement division is expected to complete during
H1 2015, subject to FCA approval.
Newlife was founded in 2003 to manufacture and provide lifetime
mortgages designed to assist homeowners to raise cash against the
security of their property while continuing to own and live in
their homes.
Legal & General has also entered into a funding agreement to
be the sole funder of new lifetime mortgages originated by Newlife.
This mortgage funding will provide another attractive source of
direct investment assets to back Legal & General annuity
liabilities.
Kerrigan Procter, Managing Director, Legal & General
Retirement said:
"We are delighted to announce our acquisition of Newlife and
entry into the lifetime mortgage market. Over 60s in the UK have
nearly GBP1.3 trillion in housing equity, and lifetime mortgages
can be an excellent way for many people to supplement their
retirement income. Legal & General's acquisition of Newlife
allows us to participate in this market which has huge potential
while also giving customers wider choice."
Peter Lucas, Executive Director and Co-founder, Newlife
Group
"We are looking forward to being part of Legal & General and
to continue to build on the successful base we've established in
the lifetime mortgage market. The changes to the pension market
from April mean that there are exciting opportunities in this
market for the future. With Legal & General's reputation as a
highly regarded customer focused brand and access to their
distribution networks, we will be able to help meet the needs of
more customers with our range of flexible, innovative financial
products."
-Ends-
For further information, please contact:
Investors:
Laura Doyle Head of Investor Relations 020 3124 2088
Stephen Thomas Investor Relations Manager 020 3124 2047
Media:
John Godfrey Group Communications Director 020 3124 2090
Richard King Head of Group Corporate Communications 020 3124
2095
Notes to editors:
1. Legal & General Group Plc
Established in 1836, Legal & General is a leading provider
of insurance, savings and investment management products in the UK.
The Group has a market capitalisation of GBP15.8bn (as at 23
January 2015) and is responsible for investing GBP676bn worldwide
(as at 30th September 2014) on behalf of investors, policyholders
and shareholders. We have over 7.9 million customers in the UK for
life assurance, pensions, investments and general insurance plans
and over one million customers in the US who rely on us for life
assurance. In 2013, Legal & General's profits before tax (on
the IFRS basis) were GBP1,134m and earnings per share were 15.20p
for the period, an increase of 10% for both respectively.
For more information on Legal & General, please see
http://www.legalandgeneralgroup.com/
2. New Life Home Finance Limited
Newlife was originally formed in 2003 with the objective of
capitalising on the growing opportunities emerging in the equity
release market. It very quickly established itself as one of very
few lenders specialising in providing award winning equity release
products to the over 60s.
In 2013 Newlife Group was granted full permission by the
Financial Conduct Authority (FCA) to administer regulated mortgages
from completion to redemption and the business now operates as a
full service provider in the retirement market by retailing,
underwriting, completing and administering lifetime mortgages and
home reversion plans. Its products are retailed exclusively through
a fully authorised and regulated panel of more than 700
intermediaries which meet stringent criteria. All of its lifetime
mortgages and home reversions comply with the Equity Release
Council Statement of Principles.
Newlife Group is a member of the Council of Mortgage Lenders
(CML), is authorised and regulated by the Financial Conduct
Authority (FCA) and is also a member of the Equity Release Council,
the equity release industry trade body.
For more information on Newlife, please see
http://www.newlife-uk.com/
Forward looking statements
Nothing in this announcement should be construed as a profit
forecast. This document may contain certain forward-looking
statements relating to Legal & General Group, its plans and its
current goals and expectations relating to future financial
condition, performance and results. By their nature forward-looking
statements involve uncertainty because they relate to future events
and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and
business conditions, market related risks such as fluctuations in
interest rates and exchange rates, the policies and actions of
regulatory and Governmental authorities, the impact of competition,
the timing impact of these events and other uncertainties of future
acquisition or combinations within relevant industries. As a
result, Legal & General Group's actual future condition,
performance and results may differ materially from the plans, goals
and expectations set out in these forward-looking statements and
persons reading this announcement should not place reliance on
forward-looking statements. These forward-looking statements are
made only as at the date on which such statements are made and
Legal & General Group Plc does not undertake to update
forward-looking statements contained in this document or any other
forward-looking statement it may make.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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