Quilter has announced its intention to sell its wealth management business Quilter International to life assurance group Utmost.
The deal comprises an estimated total of £483m payable in cash on completion, expected by the end of 2021, when Quilter International will become part of Utmost International.
The transaction is subject to approval by Quilter’s shareholders and regulators in the Isle of Man, Ireland, Hong Kong, Singapore and the Dubai International Financial Centre, as well as anti-trust approval from the European Commission.
The sale is part of Quilter's decision to simplify its business and focus on its principal customer groups in the UK market.
According to a statement on the deal on Quilter’s website: "Quilter International is less strategically aligned to Quilter's UK proposition, with limited connectivity to the rest of the UK business.
"The customer overlap between Quilter's UK customers and Quilter International has reduced in recent years, with an increasing proportion of Quilter International sales coming from non-UK customers.
"Furthermore, the financial profile of Quilter International differs from the rest of Quilter. Quilter International is a life insurance savings business, with a higher margin back-book which is running off faster than lower margin new business is being written.
"As a consequence, Quilter International's annualised net client cashflow as a percentage of opening assets under management/administration has been at a lower rate than that of the rest of Quilter, and its revenue contribution has been on a declining annual trend."
In the year ended 31 December 2020, Quilter International had assets under administration and management of £21.8bn, and contributed revenues of £118m and IFRS profit before tax of £57m to Quilter.