Home Personal Finance Aviva buys monetary advisory agency Succession Wealth

Aviva buys monetary advisory agency Succession Wealth

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Aviva buys monetary advisory agency Succession Wealth

Aviva is buying impartial monetary advisory agency Succession Wealth for consideration of £385m.

Aviva stated the deal will “considerably enhance its place within the fast-growing UK wealth market”, which is anticipated to develop at round 7% a 12 months to £2.1trillion by 2024.

It added that the acquisition may also “speed up its means to supply high quality monetary recommendation to its six million retirement and financial savings prospects who presently shouldn’t have an current advisor.”

Succession Wealth has round 200 planners advising £9.5 billion in belongings and advising 19,000 shoppers within the UK.

The deal, whereas nonetheless topic to approval by the Monetary Conduct Authority, is anticipated to shut within the second half of 2022.

Succession Wealth will proceed to function as a separate regulated, impartial monetary advisory agency and can proceed to make use of its model.

Aviva confirms there will probably be no change for purchasers.

Estimated 2022 EBITDA for Succession Wealth is anticipated to be round £24m.

Aviva confirmed that the transaction will probably be funded with money from its “robust capital place” and is anticipated to generate a double-digit return on invested capital over the medium time period.

The transfer comes as Aviva made a capital return of three.75 billion to shareholders in 2021 and introduced its full-year outcomes.

As at 31 December 2021, Aviva Group had complete belongings beneath administration of £401bn.

Doug Brown, CEO of Aviva UK and Eire Life, stated: “We’re delighted to be working with the Succession Wealth administration workforce. They’ve constructed an amazing enterprise through the years and I’m assured that Aviva’s dimension, assets, capabilities and shared imaginative and prescient will permit Succession Wealth to proceed to increase its main consumer and planner providing within the engaging UK wealth market. This acquisition expands our advisory providing and helps our current shoppers who’re presently with out an advisor to higher safe their monetary future.”

James Stevenson, Group CEO of Succession Wealth, stated: “We’re delighted to turn out to be a part of Aviva and to supply our impartial monetary planning experience to Aviva shoppers who shouldn’t have an advisor. The demand for monetary recommendation throughout the wealth spectrum has by no means been better and the chance to mix Succession Wealth’s holistic monetary planning experience with Aviva’s capabilities and consumer attain is extraordinarily thrilling. The Succession Wealth model and our core impartial advisory providing are elementary to offering our current shoppers and our workers with continued stability and safety as we embark on this new journey as a part of Aviva.”