Insurer Zurich has agreed to sell its 25% stake in advice network Openwork over the next four years.
As part of the agreement, Zurich will sell its shares in Openwork by March 2020, by transferring them to Openwork’s other main shareholder, Openwork Partnership, which represents the network of some 600 adviser firms and 3,000 advisers.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
This deal will see Openwork continuing to distribute Zurich product lines in the UK.
Openwork CEO Mark Duckworth said: "This agreement marks a major point in Openwork’s development. Advisers can see a clear path, collectively, to owning the network that provides the vital infrastructure behind their own businesses, a benefit which will be available in due course both to existing and new firms that join us."
"The agreement also demonstrates that Openwork has a clear ability to grow and create value, and we look forward to continuing to work closely with Zurich which has long been an integral part of our proposition."
Zurich UK Life managing director for retail David White said: "Today’s announcement is the culmination of the strategy set out when Openwork was created in 2005 and reflects the huge strides Openwork has made in recent years to become and remain profitable.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"The bonds between the two businesses remain very strong and, while Zurich will no longer be a shareholder as a result of this agreement, we will continue to provide our market-leading platform and protection propositions to Openwork’s advisers and their clients."
