Royal & Sun Alliance has sold its life insurance organisation to the Resolution Life Group for £850m. This side of the operation had been closed to new business for some time. Resolution Life has agreed to continue running policies in the same way as Royal & Sun Alliance had done, so major changes will not be seen by policyholders.
Whilst the deal has been done, the industry regulator, the Financial Services Authority still has to rubber stamp it. Doing this will mean the FSA believes the sale is in the interest of policyholders.
Our View
As we said when Royal & Sun Alliance closed their books to new business two years ago, policyholders should review their policies and compare them to what is available elsewhere. We do not believe that policyholders should just rush away and transfer their policies elsewhere. It is worth waiting to see what Resolution Life's plans are and whether they will be of benefit.