Charles Taylor warns on 2017 earnings, announces acquisition

22nd Nov 2016 11:07

(ShareCast News) - Charles Taylor announced the acquisition of a closed book of life assurances from Zurich International for up to £4m, as it said 2017 earnings are now expected to be below market views.The insurance services group said the deal is part of its strategy to make tactical acquisitions in the international life insurance sector to grow its life insurance business and associated services. The book - Allied Dunbar International Fund Managers - had gross assets of £323m as at 30 June and Charles Taylor estimates the current annual revenue from the book to be £3.6m and profit to be £1.7m.Buried within the news of the acquisition, Charles Taylor warned about its earnings for 2017."This acquisition, together with recent acquisitions and business developments, is expected to support the group's earnings growth, although this is now anticipated to be somewhat lower than the market's previous expectations for 2017."Chief executive officer David Marock said: "This agreement to acquire the closed life assurance book from Zurich follows our purchase last year of Scottish Widows International. It demonstrates our commitment to grow our life insurance and servicing businesses in the Isle of Man. Over the last five years we have made five life insurance acquisitions."We have significant experience with acquiring and managing life businesses. We will work closely with Zurich to ensure that policyholders experience a seamless change of ownership and continue to enjoy the same excellent levels of service."At 1115 GMT, the shares were down 10% to 261p.