Marvin OnumonuFinancial mutual Scottish Friendly has acquired pension and annuity payment books from Fidelity International.
This move adds £2.16bn to their assets under management (AUM), now totalling over £6.3bn.
The acquisition includes unit-linked Section 32 pensions with £2.16bn assets, covering about 40,000 policyholders, and in-payment annuities with £6.6m liabilities for approximately 1,000 annuitants as of 31 December 2024.
Subject to regulatory approval, the transfer is expected to complete by the end of September 2026.
Stephen McGee, chief executive of Scottish Friendly, said: “This is a significant acquisition for Scottish Friendly, growing our business and offering long-term value for our eligible members through our ProfitShare initiative.
“We are committed to helping our customers and their families achieve financial wellbeing through friendly products and customer care.
“For customers transferring to us, we will ensure they receive the service and support they need during this period and beyond.”
McGee added: “I am delighted that Fidelity International has chosen Scottish Friendly as a credible partner and has entrusted us with its customers.
“Winning the tender process is a significant achievement and I look forward to welcoming customers to Scottish Friendly when the deal completes.”
Stuart Warner, head of global platform solutions at Fidelity International, said: “We are committed to improving our Workplace Investing operating model, with the aim of delivering the best possible customer experience and retirement outcomes for our clients and members.
“The acquisition of our Section 32 pensions business by Scottish Friendly will support the delivery of this strategy. Scottish Friendly has significant experience in acquisitions such as these, and we look forward to working closely with them to support members through this transition.
“Members will remain invested in FutureWise, our leading default investment strategy, and continue to benefit from its development over years to come.”
