ZURICH COMPLETES SALE OF THREADNEEDLE TO AMERICAN EXPRESS

Zurich Financial Services (ZFS) has completed the sale of its UK fund management operation Threadneedle Asset Management to American Express Financial Corp for £340m, it confirmed today. Under the terms of the deal, Threadneedle will continue to manage certain assets for ZFS UK for up to eight years, subject to standard performance criteria, while Threadneedle will retain its branding. Zurich and American Express also agreed when the deal was originally signed in June that Threadneedle would maintain its working relationship with Zurich’s UK distribution network, meaning its products would continue to be distributed via Zurich’s tied financial adviser network Zurich Advice Network and the Zurich Independent Financial Advisors Group. London-based Threadneedle was created almost ten years ago by the 1994 merger of the investment management functions of UK players Allied Dunbar and Eagle Star. It became part of ZFS in 1998, following Zurich’s merger with BAT Industries’ financial services business, and at end-March had more than £44bn in assets under management.