Aviva is to acquire wealth management firm Succession Wealth for £385 million, as the assurer looks to extend its advice reach.
Aviva said the acquisition will “significantly” enhance its presence in the UK wealth market as growing numbers of people seek retirement and savings advice.
The UK wealth market was worth an estimated £1.6 trillion in 2020 and is expected to grow by around 7% per year to £2.1 trillion by 2024.
According to Aviva, the deal will provide it with the capability to offer high quality advice to its approximately 4 million workplace pension customers. Aviva currently has £96 billion of assets under management, as well as around 2 million individual pensions and savings customers with £139 billion of assets under management.
Amanda Blanc, group chief executive officer at Aviva, said: “The acquisition of Succession Wealth boosts Aviva’s presence in the fast-growing UK wealth market; supports our strategy to grow sustainably and expands Aviva’s ability to offer high quality financial advice to millions of our customers.”
Succession Wealth has around 200 planners advising on £9.5 billion of assets and delivering advice to approximately 19,000 clients throughout the UK.
The firm will continue to be managed by chief executive officer James Stevenson and will operate as a separately regulated, independent, financial advice firm and use the Succession Wealth brand.
Doug Brown, chief executive officer of Aviva UK and Ireland Life, said: “We are excited to partner with the management team at Succession Wealth. They have built a great business over the years and I am confident that Aviva’s scale, resources, capabilities and shared vision will enable Succession Wealth to further expand its leading client and planner proposition in the UK’s attraction wealth market. This acquisition will broaden our advice offering and will help our existing customers currently without an adviser to better secure their financial future.”
James Stevenson, Group CEO of Succession Wealth, added: “We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don’t have an adviser. The demand for financial advice across the entire wealth spectrum has never been greater and the opportunity to combine Succession Wealth’s holistic financial planning expertise with the capabilities and customer reach of Aviva is hugely exciting.
“The Succession Wealth brand and our core independent advice proposition is fundamental in providing ongoing stability and reassurance to our existing clients and our people as we embark on this new journey as part of Aviva.”
