Scottish Widows to Remain in Edinburgh After $7 Billion Lloyds TSB Takeover

Strategic Insights -

The CEO of Scottish Widows, Mike Ross, has hailed the $7 billion takeover by Lloyds TSB as "great news" for Edinburgh, with policy-holders set to receive payments of between $500 and $6000. The takeover, the largest-ever involving a Scottish financial institution, is expected to create Britain's second-largest provider of life, pensions, and unit trusts. With 1.6 million policy-holders, including 900,000 with-profit policy-holders, who will receive an average payment of $6000, the payout is expected to be substantial.

Key Takeaways:

  • The $7 billion takeover by Lloyds TSB will see Scottish Widows policy-holders receive payments of between $500 and $6000.
  • The takeover is expected to create Britain's second-largest provider of life, pensions, and unit trusts with $80 billion of assets.
  • The deal will allow Scottish Widows to operate on a much larger scale with Lloyds selling Scottish Widows products through its 2,500 branches to its 15 million customers.
  • The takeover will not result in job losses in Edinburgh, where Scottish Widows employs almost 3,000 staff, but will lead to some redundancies south of the Border.
  • Lloyds TSB expects to make annual cost savings of $60 million within three years.
  • The combined group will have a 7% share of the UK pensions, life assurance, and unit trust market.

Statistics:

  • 1.6 million policy-holders will receive payments from the takeover.
  • 900,000 with-profit policy-holders will receive an average payment of $6,000.
  • The takeover will create Britain's second-largest provider of life, pensions, and unit trusts with $80 billion of assets.
  • Lloyds expects to make annual cost savings of $60 million within three years.
  • The combined group will have a 7% share of the UK pensions, life assurance, and unit trust market.

Sources:

  • IAN BURELL, THE chief executive of Scottish Widows.
  • Mike Ross, CEO of Scottish Widows.
  • Kent Atkinson, Finance Director of Lloyds TSB.
  • Evening News.
  • Lloyds TSB Scotland.