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Dec 2, 2014

Aviva agrees terms of $8.8 billion Friends takeover

LONDON, Dec 2 (Reuters) – British insurer Aviva
agreed terms on Tuesday for a 5.6 billion pound ($8.8 billion)
all-share takeover of rival Friends Life, responding to
pressures caused by pension industry reform.

Pension providers are rushing to revise their product ranges
after the government in March surprisingly removed obligations
for people to buy an annuity, or income for life, at retirement,
hurting sales.

Dec 1, 2014

Aberdeen’s shares surge on cost savings, share buyback hopes

LONDON (Reuters) – Fund manager Aberdeen Asset Management reported a “transformational” performance by its Scottish Widows Investment Partnership (SWIP) acquisition on Monday and raised hopes of a share buyback, sending its shares to a near 11-month high.

The money manager also said flows into equity funds had improved in the fourth quarter after a companywide net outflow of 20 billion pounds ($31.3 billion) in the year to Sept. 30.

Dec 1, 2014

British fund manager Aberdeen hit by emerging markets gloom

LONDON, Dec 1 (Reuters) – Fund manager Aberdeen Asset
Management cited weakness in emerging markets for 20
billion pounds ($31.3 billion) of net outflows that cast a
shadow over slightly better than expected full-year profit on
Monday.

Emerging market stocks have been flat this year,
with geopolitical risks from the Ukraine crisis and a drop in
oil prices weighing on shares. Emerging market sovereign bond
spreads have also widened sharply in recent months.

Nov 28, 2014

Smaller alternative funds complain of European ‘passport’ costs

LONDON (Reuters) – Hedge fund and property fund managers are facing unexpected charges and administrative hurdles to sell their funds across Europe, deterring some from doing so and cutting across the principle of an open market, lawyers and fund managers say.

Europe’s directive on Alternative Investment Fund Managers (AIFMD) came into force in July, regulating the managers but enabling them to sell their funds anywhere within the European Economic Area.

Nov 27, 2014

L&G wins 2.5 billion-pound defined benefit pension deal

LONDON (Reuters) – Insurer Legal & General has won a contract to take on 2.5 billion pounds of risk from TRW Automotive’s pension scheme and insure over 22,000 of its pensioners, as firms seek to offload costly pension liabilities.

Many British companies’ defined benefit – or final salary – schemes are in deficit, hampered by low interest rates which make it harder to achieve the investment returns needed to pay pensioners in the scheme.

Nov 27, 2014

L&G wins 2.5 bln stg defined benefit pension deal

LONDON, Nov 27 (Reuters) – Insurer Legal & General
has won a contract to take on 2.5 billion pounds ($3.95 billion)
of risk from TRW Automotive’s pension scheme and insure
over 22,000 of its pensioners, as firms seek to offload costly
pension liabilities.

Many British companies’ defined benefit – or final salary -
schemes are in deficit, hampered by low interest rates which
make it harder to achieve the investment returns needed to pay
pensioners in the scheme.

Nov 25, 2014

UK insurers and fund firms battle it out for pensioners’ cash

LONDON, Nov 25 (Reuters) – Billions of pounds in savings
that retiring British workers would have swapped for an income
for life are up for grabs after recent rule changes – and fund
managers are battling insurers for a slice of it.

Surprise reforms announced by the government this year mean
Britons are no longer forced to buy a guaranteed income – an
annuity – at retirement, so savers can do what they like with
their money when the rules take effect in April.

Nov 24, 2014

Aviva falls on Friends Life merger plan doubts

LONDON (Reuters) – Shares in British insurer Aviva (AV.L: Quote, Profile, Research, Stock Buzz) fell more than five percent on Monday reflecting uncertainty about the potential benefits of the company’s 5.6 billion pound (8.79 billion US dollar) plan to merge with rival Friends Life (FLG.L: Quote, Profile, Research, Stock Buzz)

The two insurers have agreed outline terms for a possible all-share deal, in which Aviva would offer a 15 percent premium to Friends Life’s share price to give those investors a 26 percent stake in the new company.

Nov 23, 2014

Aviva, Friends Life 5.6 bln pound merger plan makes sense -investors

LONDON, Nov 23 (Reuters) – Aviva’s potential 5.6
billion pound ($8.8 billion) purchase of Friends Life
reflects a need to consolidate and cut costs in Britain’s
insurance industry, fund managers said.

The two companies said on Friday they had agreed terms of a
possible all-share deal at a 15 percent premium to Friends
Life’s closing price, offering Friends Life shareholders a 26
percent stake in the new company.

Nov 21, 2014

Aviva in $8.8 billion deal to buy Friends Life after pensions shake-up

LONDON (Reuters) – British insurer Aviva (AV.L: Quote, Profile, Research, Stock Buzz) said on Friday it had agreed terms on a possible deal to buy rival Friends Life (FLG.L: Quote, Profile, Research, Stock Buzz) for 5.6 billion pounds ($8.8 billion), as British pension reform puts pressure on insurance companies to find new business.

Pension providers are rushing to reinvent themselves after the government in March unexpectedly removed obligations for people to buy an annuity, or income for life, at retirement, sharply cutting annuity sales.

    • About Carolyn

      "I have worked at Reuters for more than 20 years but I switched in Sept 2014 to a new beat - insurance and fund management. I write about things like insurance deals, fund trends, geopolitical risks insured by Lloyd's and I'm grappling with understanding company accounts. In my vanishingly small spare time, I hope to contribute more to Reuters entertainment file."
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