UK-listed Friends Life Group, which provides services including wealth management via some of its domestic and international operations, is considering selling its Luxembourg-based Lombard International Assurance business, a report says.

UK-listed Friends Life Group, which provides services including wealth management via some of its domestic and international operations, is considering selling its Luxembourg-based Lombard International Assurance business, according to a report by Sky News.

The firm, which is listed on the FTSE 100 Index of blue-chip UK companies, declined to comment on the issue when contacted by this publication.

The Lombard business focuses on areas such as wealth planning solutions for ultra high net worth individuals, in areas such as private placement life insurance, an area of continued growth and development in the wealth management sector. As explained on its website, the business “pioneered private bancassurance solutions that use life assurance as a sophisticated financial planning tool incorporating the invaluable benefit of Luxembourg’s solid insurance policyholder protection regime”. The business doesn’t directly market to end-clients but works with private banks and other intermediaries.

In certain markets, such as in Hong Kong, the market for wealth management-orientated products by insurers has been expanding, albeit not at an even pace, firms have said.

The news report about Friends Life’s ambitions said Blackstone, the private equity firm, and US insurer Philadelphia Financial are considering a joint offer for this business, which has been up for sale for over half a year. Blackstone declined to comment to this publication when contacted.

(Editor’s comment: A sale represents a focus on “core” activities by Friends Life and suggests that the business of running wealth structuring and related services to UHNW individuals may not be lucrative enough to justify its place in the stable. The Luxembourg-based business, and its rivals, are part of an interesting – and sometimes under-appreciated – part of the wealth management ecosphere. At a recent conference in London, I was told that the wealth structuring capacity of life insurance needs to flagged up more and given more of a profile. There are several firms in this sector, such as Swiss Life. It may be interesting to see if, the deal goes through for Lombard, its profile becomes more visible. An issue for the future maybe whether regulators, after having gone after private banks in pursuit of undeclared money, turn their guns on the insurance business.)