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Intrinsic poised to buy Positive Solutions from Aegon

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  • 12/06/2013
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Intrinsic poised to buy Positive Solutions from Aegon
Network Intrinsic is set to buy national IFA firm Positive Solutions from parent company Aegon.

Once the deal is completed Intrinsic will become the shareholder of Positive Solutions, whilst Aegon will acquire an equity stake in Intrinsic as part of the transaction.

The Positive Solutions brand will remain and its senior management team will continue to run the business.

The transaction is expected to close in Q3 2013.

Aegon bought a 60% stake in Positive Solutions in 2002, and purchased the remaining 40% in 2005.

The national IFA is currently a key part of the life company’s distribution network, which also includes Origen and a 20% stake in network Tenet.

Positive Solutions and Origen posted a combined loss of £1.7m in the first quarter of this year.

The losses – rounded up to £2m in parent Aegon’s accounts – compared to a combined loss of £1m for the first quarter of 2012, and zero earnings for the fourth quarter of last year.

Full year accounts for the two distribution arms point to the majority of the losses having been accrued by Origen.

Positive Solutions reported profits before tax of £2.3m for last year, wiping out a £0.4m loss in 2011.

Gross margins at the business rose to 21.5%, up from 19% the previous year. Adviser productivity also rose, up 6%.

By comparison Origen posted a loss before tax of £2.9m after a £1.9m provision for a review into advice suitability impacted on the business’ bottom line.

Adrian Grace, chief executive of Aegon UK said:”Positive Solutions is a good business. Until now we have seen it as core to our strategy.

“However in a post-RDR world we intend to focus on our market leading platform, which is gaining traction at a remarkable rate, and on advancing digital solutions to better meet the savings and retirement needs of our customers in the workplace and those individuals approaching retirement.”

Richard Freeman, chief executive of Intrinsic Financial Services said:”Positive Solutions is a well-run business that delivered strong profits in 2012.

“We have been working closely with the senior management team at Positive Solutions for the past few months and it’s clear there is a natural cultural fit between our two businesses that bodes well for the future.

“The acquisition of Positive Solutions marks a genuine step change for the Intrinsic Group and a significant milestone in our journey.

“Combined, we will have over 3000 advisers and a joint turnover of almost £200m. That scale, together with the professionalism of advisers across both businesses, will enable us to rapidly accelerate our strategic plans for the Intrinsic Group.”

Peter Coleman, chief exectuive of Positive Solutions said:”This sale to Intrinsic is excellent news for Positive Solutions, its partners and its clients.

“Now with the backing of Intrinsic we will continue to implement our strategic plan: to improve the appeal of our proposition to benefit our customers and help our partners make their businesses more profitable. We are entering an exciting new era in the success story of Positive Solutions.”

 

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