Royal Liver calls a halt to merger talks with rival

Aug 16 2007 by Tony McDonough, Liverpool Daily Post

ROYAL Liver Assurance yesterday said it had terminated talks with rival Royal London over a possible merger.

The companies revealed they were in talks in April but now Royal Liver has said the interests of its members would be better served by staying independent.

In a statement the company said: “The boards of Royal Liver and Royal London announce that discussions have been terminated in relation to a combination of the societies.

“Since it was announced that the societies were in discussions, the management and boards of both organisations have worked together constructively in examining the benefits of and structure for a combination of the societies.

“After careful thought and thorough consideration, the board of Royal Liver has concluded that although the proposal from Royal London had considerable merits for its members, they felt that those interests will be better served by pursuing an independent strategy.”

Shortly after the original announcement that talks had begun Royal Liver insisted it was committed to retaining its mutual status even in the event of any merger.

However, there were fears that had such a deal gone ahead one of Liverpool’s most iconic business names could have disappeared forever.

Royal Liver and Royal London are both friendly societies, organisations owned by their members.

They provide savings, investments, insurances, pensions and specialist annuities, usually offering better returns and lower charges.

A combined business would have had nearly 5m members and around £35bn in funds under management.

Royal Liver was formed in 1850 when a small group of working men gathered in the Lyver Inn and founded what was then called the Liverpool Burial Society with the aim of allowing the poor to put money aside for their funerals. It now employs more than 2,500, including 500 in Liverpool.