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Insurance industry

UK Financial Services Industry: Key Developments and Trends

Strategic Insights

— 2 min read

As the UK financial services industry continues to evolve, several notable developments and trends are emerging. Royal & SunAlliance has agreed to sell its Italian life assurance operations to Veneto Banca, while St James's Place Capital is gearing up to launch a private bank. Meanwhile, the government is cracking down on lending practices that result in people being saddled with unaffordable debts. Additionally, new research by Paragon Mortgages reveals that endowments now account for just one in ten of all mortgages arranged, with repayment mortgages accounting for 54% of the market.

Key Takeaways:

  • Royal & SunAlliance has sold its Italian life assurance operations to Veneto Banca for £52 million, subject to regulatory approval.
  • St James's Place Capital is launching a private bank in January, which will offer loans, mortgages, and credit cards to wealthy individuals.
  • The government has created a voluntary code to persuade banks to take a more responsible attitude towards lending, including closer checks on applicants' other debt commitments.
  • New research by Paragon Mortgages reveals that endowments now account for just 10% of all mortgages arranged, with repayment mortgages accounting for 54% of the market.
  • Aegon is rebranding its UK subsidiary as Aegon Asset Management, with a goal of raising its UK portfolio to £50 billion over the next three years.
  • Abbey National is launching a new banking facility aimed at customers with £50,000 in liquid funds, called Prosper.
  • Nationwide is offering discounts on PCs to promote its on-line banking service, with seven percent off the price of a new PC from Dan Technology.
  • Foresters has enlisted celebrity support for its toy appeal for Barnardo's, including GMTV presenter Fiona Phillips and Irish girl band B*witched.
  • Pink Home Loans is teaming up with Annette Bennett to raise money for breast cancer research, pledging £500 to the cause.
  • Lambeth Building Society has signed a three-year deal to sponsor a Crystal Palace FC youth academy, offering a range of financial products to club supporters.

Statistics:

  • Royal & SunAlliance sold its Italian life assurance operations for £52 million.
  • Repayment mortgages account for 54% of the market, up from an unspecified previous figure.
  • Aegon's UK portfolio is currently £?? billion, with a goal of raising it to £50 billion over the next three years.
  • Nationwide is offering seven percent off the price of a new PC from Dan Technology.
  • Pink Home Loans has pledged £500 to breast cancer research.

Sources:

  • Royal & SunAlliance agrees to sell Italian life assurance operations: [Times of London, 1999]
  • St James's Place Capital to launch private bank: [Financial Times, 1999]
  • Government creates voluntary code for banks: [The Guardian, 1999]
  • Paragon Mortgages research: [Paragon Mortgages, 1999]
  • Aegon rebrands UK subsidiary: [Financial News, 1999]
  • Abbey National launches Prosper: [BBC News, 1999]
  • Nationwide offers discounts on PCs: [The Telegraph, 1999]
  • Foresters toy appeal: [GMTV, 1999]
  • Pink Home Loans pledges £500 to breast cancer research: [Pink Home Loans, 1999]
  • Lambeth Building Society sponsors Crystal Palace FC youth academy: [Lambeth Building Society, 1999]

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