Acquisition of Nordea Life & Pensions Limited

Date: 22 September 2014

On behalf of: Charles Taylor plc ("Charles Taylor" or the "Company")

Embargoed until: 0700hrs

Charles Taylor plc

Acquisition of Nordea Life & Pensions Limited

Charles Taylor plc announced today an agreement to acquire Nordea Life & Pensions Limited ("NLP"), an Isle of Man life insurer, from Nordea Life and Pensions S.A., Luxembourg. NLP will be acquired by Charles Taylor's wholly owned Isle of Man-registered life insurer, LCL International Life Assurance Company Limited ("LCLI"). The acquisition is part of Charles Taylor's strategy to make tactical acquisitions in the international life insurance sector and thereby grow its life insurance business in the Isle of Man and generate cash releases for the Company.

NLP provides personalised life insurance products primarily to high net worth individuals.

The initial consideration is expected to be €2.5m but subject to the final amount of a pre-completion dividend. The initial consideration is to be met from existing cash resources. A post-completion adjustment will apply, dependent upon net asset value at completion. Net assets are expected to be €5.5m after the pre-completion dividend. Future payments linked to management charge levels, up to a maximum of €3.85m are due to be paid over two years.

The gross assets of NLP were €803m based on August 2014 management accounts. It is intended that the NLP business will be transferred into LCLI, subject to court approval, which would enable surplus reserves to be released.

NLP achieved adjusted profits of €0.3m in the six months to 30 June 2014. The transaction is expected to be modestly earning enhancing in 2015 after transaction costs and has the potential to generate cash releases in the medium term.

The acquisition is subject to regulatory approval by the Isle of Man Insurance and Pensions Authority.

David Marock, Group Chief Executive Officer, Charles Taylor said:

"This acquisition marks another important step in delivering our growth strategy. We have said that we are seeking to grow our life business by making further appropriate acquisitions in the international life sector. The acquisition of Nordea Life & Pensions follows the acquisitions of Alico Isle of Man Limited and Global Life Assurance Limited, whose policies have now been transferred into LCLI and continue to be serviced to a very high standard. These acquisitions have also delivered cash releases for the Company."

"The policyholders of Nordea Life & Pensions will continue to enjoy excellent levels of service and by merging the business into Charles Taylor's life insurer, we will be able to streamline management, improve systems and deliver efficiencies without compromising service. We expect the acquisition to be modestly earnings enhancing and it has the potential for an early payback of our investment."

-ENDS-

Notes to editors

Charles Taylor plc is a leading provider of professional services to clients across the global insurance market. The Group has been providing services since 1884 and today employs over 1,000 staff in 60 offices spread across 25 countries in the UK, the Americas, Asia Pacific, Europe and the Middle East.

The Group offers services, principally on a fee-based model and operates through three businesses - Management, Adjusting and Insurance Support Services. Charles Taylor also owns some insurers.

Further information is available at www.ctplc.com 

Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.