Members of mutual insurer Royal London have voted overwhelmingly in favour of proposals to buy the life insurance and asset management businesses of the Co-operative Banking Group.
At the company's Extraordinary General Meeting (EGM) held in London this morning (4 June) 95 per cent of members voted in favour of a motion to acquire the businesses and 5 per cent were against or withheld. The company required a simple majority member vote in favour for the proposals to be passed.
The vote in favour from the members means that, subject to final regulatory approvals involving a 'Change in Control' from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), the acquisition is expected to be completed in late summer 2013.
Tim Melville-Ross, chairman of Royal London, said: "I warmly thank the Royal London members for their support for the Board's proposals to acquire these businesses.
"The acquisition increases our scale, capabilities, profitability and financial strength. The board believes it will support further our mutual dividend policy which has already seen over £325 million allocated to our members accounts since 2007.
"It is transformative and exciting for us and we look forward to welcoming the Co-operative policyholders into Royal London. We become an even more substantial player in the UK life and pensions market and it is a landmark step forward representing significant financial and strategic value to the Group and our members".
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With the acquisition Royal London Group's funds under management will increase from circa £50 billion to £70 billion and asset management capabilities will also be strengthened, particularly in the area of socially responsible investments.
The number of customers of the Group will increase from around 4 million to 6 million and the number of policies managed will increase from 6.8 million to 10.3 million.
The EGM was to be followed this morning by the Royal London's Annual General Meeting (AGM) which is to be the last for Tim Melville-Ross as chairman before his retirement. Rupert Pennant-Rea is to be appointed the new chairman at the AGM, said the company.
Royal London Group includes: Bright Grey, Scottish Provident, Scottish Life, Ascentric (an IFP corporate member) and several other subsidiaries.