Utmost Group to acquire Lombard International adding £43bn AUA

Utmost Group has entered into an agreement to acquire Lombard International Assurance which will add £43bn of assets under administration, subject to regulatory and other approvals.

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.”