Slaughter and May advised Marine and General Mutual Life Assurance Society ('MGM Advantage'), a retirement income specialist and mutual society, on the sale of its new business franchise to TDR Capital LLP, generating a goodwill payment of £9 million for the benefit of eligible members for the mutual society who hold with-profits policies.

The mutual society itself will close to new business upon completion of the deal. A new life company, financed by funds managed by TDR Capital LLP, will focus on the retirement income market trading under the MGM Advantage Brand. As part of this transaction, £800 million of annuity business risks will transfer to the new life company. A new services company in the same group as the new life company will provide services to the closed mutual society.

The transaction is subject to FSA approval, other clearances and to a member vote to take place at an EGM expected to be held by mid year.
 
Contacts

Corporate and Commercial: Craig Cleaver (partner), William Tong (associate), Daniel Okusaga (associate), Timothy Follett (associate); Tax: Mike Lane (partner), James Hume (associate); IP/IT: Cathy Connolly (partner), Will Hedges (associate); Financial Regulation: Ruth Fox (partner), Tim Fosh (associate); Pensions and Employment: Jonathan Fenn (partner), David Wilks (associate), Harriett Clover (associate), Joanna Morgan (associate); Real Estate: David Waterfield (partner), Will Bryant (associate); Financing: Matthew Tobin (partner), Ed Fife (partner), Jelena Vasiljevic (associate)

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