Quilter says it has agreed to sell its international business to life insurance group Utmost Group for £483 million ($664.37 million), as Quilter seeks to focus on its UK business.
The deal comes at a time when the wealth management sector is benefiting from a recovery in the volumes of funds under management after a period in which it suffered from outflows of funds due to the pandemic, and the improvement is also due to massive government incentives and the implementation of vaccines.
Quilter CEO Paul Feeney said the sale would allow the company to focus on accelerating the growth and efficiency of its schemes, as well as streamlining its business and targeting high net worth clients at the company’s UK headquarters.
Starting from next year, the company aims to achieve a growth in the net liquidity of its customers by at least 6% of the value of assets under management in the medium term, knowing that its previous target was a growth of 5% annually, and the company also expects to achieve an independent operating profit margin of not less than 25% by 2023 and at least 30% by 2025.
While its competitor, St. James’s Place has seen a 50% increase in assets under management by the end of 2025 to exceed £200 billion, and at the end of 2020 Quilter’s assets are reported to have increased by 7% year-on-year to £117.8 billion.