Winners and losers in Clerical's big deal
Article Abstract:
Halifax Building Society has offered 800 million pounds sterling to acquire Clerical Medical, a UK mutual. Clerical medical's with-profits fund receives 730 million pounds, but Halifax would remove the non-profit business which pays profits to with-profits policyholders. Bonuses will be paid according to how long a policy has to go, and how much it is worth, not on how long it has been held. Voting members who do not have with profits policies are not likely to gain much from the deal.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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Halifax puts the accent on thrift
Article Abstract:
The Halifax Building Society plans to acquire a life assurer, Clerical medical, and also plans a flotation in 1997. Halifax reported a pre-tax profit of 1.1 billion pounds sterling for the 12 months to end-Jan 1996. Halifax gains access to sales of pensions, life assurance and other products through independent financial advisers from the Clerical Medical deal. Halifax has reduced its mortgage rate but has not reduced its rate paid to savers, arguing that thrift should be rewarded.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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Comment about this article or add new information about this topic:
Clerical's safety net
Article Abstract:
Clerical Medical is seeking to be acquired by Halifax. The UK life assurance market is difficult and too many companies are competing in the field. Clerical argues that it needs more capital to produce good investment results. Smaller companies are more vulnerable in volatile markets. The price offered by Halifax for the non-profit business is 590 million pounds sterling, and an additional payment of 140 million pounds is offered for goodwill.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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