Private equity firm buys MGM Advantage

Jenna Towler
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Annuity specialist MGM Advantage, a mutual society, has been sold to private equity firm TDR Capital.

The firm said the deal would net eligible members of the mutual society who hold with-profits policies a share of a £9m goodwill payment. The mutual society will close to new business when the deal completes allowing a distribution of the surplus capital over time to eligible members. A new life company, financed by funds managed by TDR Capital, will continue to focus on the retirement income market trading under the MGM Advantage brand. It will also continue to service the closed mutual society. As part of the transaction, £800m of annuity business risk will transfer to the new li...

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