FNB, Ashburton transfer gets the nod

FIRST National Bank (FNB) said yesterday that the Financial Services Board had approved the transfer of more than 2.3 million Ashburton and FNB branded FNB Life Insurance policies to FirstRand Life, the long-term insurance arm of the FirstRand Group. The transfer, which became effective from October 1, means all FNB Life insurance policies are now fully underwritten under the group life licence. The policies were previously underwritten by two financial services groups, MMI Group and Rand Merchant Bank Structured Life. The transfer affected all policies underwritten by Rand Merchant Bank Structured Life, and all FNB Life branded credit life, funeral, personal accident, cover for life, hospital cash plan and lifestyle protector policies underwritten by MMI Group and distributed through FirstRand Bank. The bank said FNB Life would continue to oversee product distribution and administration, with no changes made to client policies. Lee Bromfield, the chief executive of FNB Life, said they were pleased with the approval of this transfer. “FNB is now in a good position to further scale its strategy to build the next generation of life insurance products for its customers,” Bromfield said. “Going forward we aim to leverage economies of scale to deliver more value, cost effective and innovative products and services.” FNB Life customers can rest assured that they will continue enjoying the same benefits and level of service, and that the transfer will not lead to any changes in monthly premiums, charges, benefits, as well as terms and conditions. – ANA