Swiss Life UK's announcement that it is closing to new individual business after failing to find a s...
Swiss Life UK's announcement that it is closing to new individual business after failing to find a suitable buyer has come as a shock to many advisers and already the market is buzzing with rumours about the decision.
If last year's sales figures are anything to go by, the UK business is very profitable.
However, according to some pundits, waiting for a buyer for almost a year cannot have been particularly good for productivity, leading some to speculate that the books are not as healthy as they were.
Others in the market think the move could be to force the hand of a potential buyer ' but this is purely speculation. Although sales in the market as a whole have seen significant increases over the past couple of years, the feeling is that margins are still tight. Closing to individual business will undoubtedly free up capital ' perhaps making the group business more attractive to buyers.
However, the overriding feeling in the market is bafflement. People just cannot understand why the business has not been snapped up ' making some question how efficiently negotiations have been handled to date.
Current market rumours only go to show there is huge interest in Swiss Life's decision ' the reason being that its products will be missed.
Some market commentators are not ruling out Swiss Life finding a buyer and hopefully this will be the case. If the UK business closes completely, it will be bad news not just for staff, but for the market as a whole ' reducing competition in this already niche market. Let us hope it will not come to that.
Kirstie Redford, editor
