Royal London, which employs a significant number in central Edinburgh, has agreed to sell its subsidiary, RL Corporate Pension Services Limited to XPS Pensions Group for £4.8 million.
XPS has 900 people in 15 offices across the UK including Edinburgh, Perth and Stirling. RLCPS’s 46 staff members are expected to transfer to XPS’s Edinburgh office in the months following the closing of the Acquisition.
RLCPS provides actuarial, consulting and administration services to defined benefit pension schemes. The company also acted as consultants to third party administration services to fund managers and the trustees of occupational pension schemes.
Total income for 2017 was just over £1 million, with turnover of £2.23 million. Administrative expenses of £994,000 include charges for the provision of services made under a management services agreement with Royal London.
The transaction is effective subject to the satisfaction of certain conditions, expected in May 2019.
Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £114 billion, 8.8 million policies in force and 3,893 employees. It owns several dormant Scottish pension brands including Scottish Life and Scottish Provident.
As of July 2018, the directors were Robert Regan, Ewan Smith and James Smith and the company had no employees.