Royal Liver moves on from failed merger approach

Mutual life insurer Royal Liver today said it was putting recent failed merger talks with Royal London behind it as the group revealed the benefits of its cost cutting drive.

The 157-year-old group, which had been approached by fellow mutual Royal London in April over a potential tie-up, reported a 27% drop in interim operating costs as an overhaul strategy launched in 2004 started to pay off.

Royal Liver spent £23.6m (€34.9m) in the first six months of the year, down from £28.5m (€42.2m) for the same period in 2006. Over-spend was also “contained” to around £400,000, (€593,000) down from £28m (€41.5m) five years ago.

Chief executive Steve Burnett said the results marked the group’s achievement in managing costs under the turnaround plan and sought to reassure that it would continue to thrive as an independent company.

He added: “We had a duty to our members to examine carefully Royal London’s proposal.

“The strong determination by the board that our current strategy was the choice which was in the best interests of our members came with a strong vote of confidence in management’s ability to implement that strategy.”