Britain was once proud of its mutual insurance companies, notably Equitable Life.
What what was left of it , after it disastrously over promised on its guarantees, became the Utmost Group.
Utmost will continue to operate in the wealth market, notoriously as an international life company.
Utmost Group has till now been owned by its founders and by funds managed by Oaktree Capital Holdings, LLC. Oaktree Capital is owned by Brookfield Corporation which owns Just
Utmost Group is selling Utmost’s Life and Pension Business to JAB Insurance which is a Miami based insurance company
JAB insurance run by JAB holdings and has a sister company called JAB consumers that makes Krispy Cremes and runs Pret (and a few other well known brands). This is not quite where mutual insurance started.
What Utmost has to say is here (you can read the press release at Professional Pensions if you prefer) This is a statement from a firm that is selling its last connection with pensions.
Transaction strengthens Utmost’s focus on its core wealth solutions business and enables ULP to scale under new ownership
Utmost Group plc (“Utmost”), a leading global provider of insurance-based wealth solutions, today announces the sale (subject to regulatory approval) of its bulk purchase annuity (“BPA”) business, Utmost Life and Pensions (“ULP”), to JAB Insurance. The sale encompasses the entire ULP business, representing more than £5bn in assets and 175 employees.
ULP is Utmost’s UK-focused life and pensions business which entered the BPA market in late 2024. Leveraging its deep expertise in closed book insurance business, ULP has built a competitive BPA franchise, completing 11 full buy-ins totalling £311m. Under JAB Insurance, ULP will continue to pursue its ambitious growth plans.
Rationale of sale and use of proceeds
This sale reflects Utmost’s strategic decision to focus entirely on its market-leading wealth solutions business. This decision supports Utmost’s long-term growth ambitions and its commitment to harnessing opportunities in the attractive global wealth market, which continues to be driven by strong structural growth drivers and rising demand for multi-jurisdictional solutions.
The proceeds from the sale will be used to repay the outstanding bank debt issued to finance the acquisition of Lombard International. The remaining funds will be used for general corporate purposes, enabling Utmost to deliver even greater value for its customers, shareholders, employees and wider stakeholders.
The sale is expected to complete by mid-2026.
Paul Thompson, Utmost Group CEO commented:
“The sale of Utmost Life and Pensions marks an important milestone in our long-term strategy. This divestment will enable us to sharpen our focus on our market-leading wealth solutions business. We are committed to capitalising on the strong structural growth drivers within the wealth market and responding to the increasing demand for our multi-jurisdictional solutions.
“The decision to sell Utmost Life and Pensions which has built a strong reputation and delivered exceptional value to its customers was made after careful consideration. Under JAB Insurance’s ownership, I am confident that Utmost Life and Pensions will continue to thrive and excel in the competitive BPA market. I look forward to seeing their success in this next chapter.”
Andrew Stoker, CEO of Utmost Life and Pensions said:
“The acquisition by JAB Insurance signifies an exciting new chapter for Utmost Life and Pensions. Under Utmost, we have built a competitive and successful business that is establishing itself in the attractive BPA sector and it is clear that JAB Insurance shares our vision for the future. With their support and resources, we will be well-positioned to accelerate growth and deliver greater value to our customers. We look forward to building on the strong foundation that we have established as a part of Utmost and reaching new milestones as part of JAB Insurance.”
Anant Bhalla, Executive Chairman of JAB Insurance, said:
“We look forward to welcoming the Utmost Life & Pensions business and all its policyholders into the JAB Insurance family. This acquisition is consistent with our strategy to enter the most attractive global insurance markets where we can bring our permanent capital alongside differentiated capabilities across the value chain. ULP provides a strong foothold in the UK market, which fits nicely with JAB Insurance’s long-term investment horizon. We intend to support the leadership team to ensure a seamless process through deal completion and beyond, and to make ULP a significant solution for long-term financial security for UK policyholders.”
Is this the ownership pensioners want?
An UK insurance mutual company ends up as “Utmost” bought by Brookfield using Oaktree. Having already got Just, Brookfield sells on Utmost’s BPA business so that JAB insurance can convert more pension schemes to bulk purchase annuities. Utmost’s wealth business will continue in the hands of Brookfield.
There are other UK insurers being bought out by American insurers behind whom is private finance. Is this really what we wanted for our pensions? Is this something we understand or trust? These bulk purchase agreements relate to annuities and pensions bought and earned by British workers over the last 80 years.
Just what will happen to the money that has been saved to pay pensions? What is left to justify the tax advantages given. What is left to be invested in UK PLC when the insurance is run out of cities like Miami? Just why does the holding company also invest in Pret and Dr Pepper and Krispy Creme?
The parent of JAB insurance is JAB holdings . What follows may be considered water under the bridge but it is British pensioners who will become aware of this – inevitably; This we learn from the BBC
Just what does it say about the ownership of our pension and insurance business? Consumer brands, an Miami HQ and a Nazi past – is this an organisation we want to look after our retirement?
