Utmost Group plc has agreed to acquire Lombard International Assurance Holdings Sarl, subject to regulatory approvals. The acquisition, expected to be completed by the end of 2024, encompasses Lombard’s European business, as Lombard International will become a part of Utmost International, the international life assurance business of Utmost Group.
This acquisition aligns with Utmost International’s strategic plan to be a leading global provider of international life assurance as it strengthens the firm’s position in key markets throughout Europe, the fir stated.
The deal also combines two large-scale businesses with closely aligned operating models, adding £43 billion of assets under administration and over 20,000 policies to Utmost International. On a combined basis at year-end 2023, Utmost International would have had £100 billion of assets under administration and over 210,000 policies, and would have written £6.4 billion of new business.
Paul Thompson, Chief Executive Officer, Utmost Group, commented, “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.”
Lombard International will continue to operate from Luxembourg with its existing suite of products, to be distributed under the Utmost brand. The duo will operate as a single combined global salesforce maintaining the combined group’s existing distribution models.
The increased scale achieved through the acquisition will enable the group to maintain a strong capital strength. The total consideration will be financed through a £200 million bank loan, with the remainder covered by existing cash reserves.
Stuart Parkinson, Chief Executive Officer, Lombard International Group said, “This acquisition signifies a new and exciting chapter for Lombard International, ushering in a period of expanded opportunities for our clients, partners and employees. The combined Group will deliver unparalleled service and expertise to support the evolving wealth planning needs of our clients.
“The strategic fit of Lombard International and Utmost, with aligned focus on growth and client centricity, will enable the combined entity to continue on its growth trajectory and seize the opportunities that lie ahead.”
Florent Albert, Managing Director, Lombard International Assurance, concluded, “I am delighted that Lombard International is to join Utmost. Utmost have established themselves as a leader in the insurance-based wealth sector, and I am confident that they will be excellent stewards for Lombard International’s clients, partners and employees. I look forward to working closely with Paul, Ian and the rest of the Utmost leadership team to embed Lombard International into Utmost International.”
