LCCG announces it has signed an agreement with Reliance Mutual under which it is proposed that Reliance Mutual will be demutualised and all of its business transferred to a newly formed UK life company established by LCCG.

Under the proposed transaction it is expected that Reliance Mutual’s members will receive a one-off payment dependent on policy size to compensate for loss of membership rights. Policyholders will benefit from enhanced security as a result of  LCCG’s agreement to capitalise the new life company at a level which is materially in excess of Reliance Mutual’s current capital position.