Legal & General completes acquisition of New Life Home Finance Limited
LEGAL & GENERAL COMPLETES ACQUISITION OF NEW LIFE HOME FINANCE LIMITED
Legal & General Group plc (“Legal & General”) has today completed the acquisition of New Life Home Finance Limited ("Newlife") for a consideration of £5m following receipt of FCA approval.
Newlife, a privately owned UK-based provider of lifetime mortgage products, 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.
Kerrigan Procter, Managing Director, Legal & General Retirement said:
“I’m delighted the acquisition has been completed and welcome the Newlife team to Legal & General. This transaction means Legal & General can participate fully in the lifetime mortgage market which will also provide another attractive source of direct investment assets to back Legal & General annuity liabilities. We have been pleased with the number of applications Newlife has received since we became the sole funder on 9th February 2015 and the positive response we have had from lifetime mortgage advisers to our entry into the market.”
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For further information, please contact:
Head of Investor Relations
020 3124 2088
Investor Relations Manager
020 3124 2047
Corporate Affairs Director
020 3124 2090
Head of Group Corporate Communications
020 3124 2095
Notes to editors:
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 £17bn (as at 31st March 2015) and is responsible for investing £709bn worldwide (as at 31st December 2014) on behalf of investors, policyholders and shareholders. We have over seven 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 2014, Legal & General's operating profit (on the IFRS basis) was £1,275m and earnings per share were 16.70p for the period, an increase of 10% for both respectively.
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.
This announcement may contain certain forward-looking statements relating to Legal & General, 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'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 announcement or any other forward-looking statement it may make.