The FCA has signed off on the all-share merger to create JRP Group.
The Just Retirement board said it expected the merger to result in pre-tax cost savings of at least £40 million per year, with the full run-rate being achieved in 2018.
One-off integration costs of £60 million over two years have been forecast.
The statement first announcing the deal in August suggested there might be job losses. The boards said at the time they “anticipate that this will involve headcount reduction” and started “integration planning”. Further details are expected tomorrow.
Today, in a stock exchange announcement the firms stated: “The boards of Just Retirement and Partnership Assurance are pleased to announce that the PRA and FCA have each approved the change in control applications made in connection with the recommended all-share merger of Just Retirement and Partnership Assurance to create JRP Group.
“A further update on the progress of the merger will be provided following the Just Retirement and Partnership Assurance results announcements on Friday 11 March.”
The merger is expected to result in Just Retirement Shareholders owning approximately 60 per cent of the combined group and Partnership shareholders owning approximately 40 per cent.
Tom Cross Brown, chairman of Just Retirement, said: "This transaction represents a unique opportunity to accelerate the existing strategy of both businesses. Our two businesses will be bigger, stronger and more efficient together, which we believe will allow us to deliver better returns to both policyholders and shareholders."
A previous statement from the companies read: “The boards believe that the merger will deliver significant strategic and financial benefits for the combined group.
“The larger capital base will enable a broader defined benefit proposition and enhance the group's perceived strength of covenant, opening up opportunities in the attractive defined benefit scheme de-risking segment.
“The merger will strengthen the competitive position of the combined group in the UK retirement income market, expected to lead to improved customer outcomes compared to the products currently offered by larger incumbent insurers.”