Royal London has acquired equity release lender and broker Responsible Life and Responsible Lending.
A number of insurers are active in the equity release market, which is seen as a counterpoint to their annuity business.
Royal London already had a 40 per cent stake in the Responsible Group and the deal is subject to regulatory approvals. Royal London said purchasing the rest of the business will enable it to scale up its operations in what it believes will be a growing market, and deliver innovative solutions in the later life lending market.
Royal London Group CEO Barry O’Dwyer says: “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.”
The Responsible Group CEO Carlton Hood adds: “We will work with colleagues at Royal London to bring the consideration of pension wealth and property wealth together for advisers and clients.”
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