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Lloyds Banking Group to boost Scottish Widows with the acquisition of Zurich’s UK workplace pensions and savings business – update

Jackie Leiper

Following the announcement, in early 2017, of continued investment in our “Driving Pensions Value” programme, we were delighted to announce news of our acquisition back in October.

Jackie Leiper, Distribution Director

“The Zurich Corporate Savings proposition offers capabilities that will strengthen and enhance our current offering, both in terms of the product suite and also in relation to the expertise we’ll provide at the larger end of the market.

As well as being able to choose from a broad range of trust and contract-based product solutions, the flexibility of the investment capabilities will enable employers and advisers to create bespoke investments and access assets not previously available through us.

We are making good progress as we move through the legal and regulatory process of the acquisition. The first phase of this, expected to complete shortly, will see the business assets and Zurich propositions, including Master Trust and Group Self Invested Personal Pension (GSIPP) solutions, transferring to us and being rebranded Scottish Widows. The insurance policies will transfer later. We’re also continuing to evolve our award-winning service proposition so that we’re easy and efficient to do business with and can continue to build and strengthen relationships.

As well as reinforcing our commitment to this market, the greater choice will help us further meet the needs of employers and advisers and move us closer towards our goal of becoming a market-leader in this sector for customers.”

We’ve put together some Q&As to answer any questions you may have. However, if you would like to know more, speak to your usual Scottish Widows contact.


What is the announcement?

Lloyds Banking Group has entered into an agreement with Zurich to acquire its UK workplace pensions and savings business, Zurich Corporate Savings, with assets of £19 billion with c.500,000 customers.

Zurich Corporate Savings provides a workplace pensions and savings platform with leading functionality to complement Scottish Widows’ current proposition.

Why is Lloyds Banking Group entering into this agreement?

The transaction enhances Scottish Widows’ current offering whilst delivering a modern, flexible workplace savings platform and an enriched customer experience. Scottish Widows already manages more than £124 billion of funds of which £35 billion is workplace pensions business.

It is in line with the Group’s targeted growth strategy and accelerates the development of its financial planning and retirement business.

How does Zurich Corporate Savings complement the strengths of the Scottish Widows proposition?

Zurich Corporate Savings proposition will enhance Scottish Widows’ current offering and broaden our participation in the large scheme sector with Master Trust and Group Self Invested Personal Pension (GSIPP) solutions. Zurich Corporate Savings provides a flexible investment capability allowing advisers to add value through the ability to create bespoke client investments and access asset types not previously available via Scottish Widows; along with the ability for us to more quickly add and remove funds.

Who’ll be my contact going forward?

We do not intend to disturb existing relationships for our respective schemes.

When can I expect to see changes to my experience of using your services?

The legal aspects of the acquisition do dictate some timelines around key milestones. We will share details with you as we move forward.

What are your key objectives for the next 6, 12, 18 months?

The timing of our objectives is dictated by the legal process of acquisition. Our customers, both existing and new, will receive the service and proposition they expect.

Will Scottish Widows continue to deliver its short-term roadmap of proposition enhancements?

We will continue to work on the enhancements outlined in our current Scottish Widows roadmap for GIA/ISA and seamless access to drawdown from our Group Personal Pension (GPP) products.