British insurance services provider Charles Taylor plc (LON:CTR) said today that LCL International Life Assurance Company Limited (LCLI), its wholly owned Isle of Man-registered closed life business, had struck a deal to buy Global Life Assurance Limited (GLA) from Pinnacle Company Limited.
The transaction calls for an initial payment of GBP1.55m (USD2.5m/EUR1.9m), to be funded with available cash, and an additional performance-based deferred consideration of up to GBP900,000, to be paid over a period of three years.
The business being acquired is headquartered in the Isle of Man and offers investment life insurance products. It had gross assets of GBP69.4m based on the management accounts for August 2012. As part of the deal, it will continue using the services of its current insurance manager LCL Services (IOM) Ltd, a unit of Charles Taylor. GLA is seen to post an IFRS profit of around GBP100,000 in 2013.
The buyer said it expects the deal to boost to its earnings and to generate an early return on its investment.
The acquisition is subject to regulatory approval by the Isle of Man’s Insurance and Pensions Authority, as well as to court approvals.