UK-based Skipton Building Society has acquired a majority shareholding in Direct Life & Pension Services Limited (DLPS), at a total cost of £4.1 million.
Based in Chichester, West Sussex, DLPS has developed a bespoke Internet platform and Interactive Voice Response (IVR) system, which delivers quotes on non-regulated term assurance and critical illness products direct to the consumer.
Largely due to the rapid decline in demand for endowment linked mortgages, the term assurance market is now one of the fastest growing areas in the financial services arena, and is forecast to grow by at least 14% p.a. over the next 5 years, says the building society.
DLPS is also planning to move into the stakeholder pensions market.
John Goodfellow, chief executive and director of Skipton Building Society says: "The acquisition of Direct Life & Pension Services Limited brings a complementary range of skills to Skipton, together with a service which will enhance the distribution opportunities for financial services within the group, in particular our own established IFA business."