NatWest considering selling pensions provider Cushon for occupational pension plans
NatWest Plans to Sell Workplace Pensions Provider Cushon
NatWest Group, the British banking giant, has announced plans to sell Cushon, the workplace pensions provider it acquired for £144 million two years ago. The decision is part of NatWest's refocus on its core strategic priorities, which include a bank-wide simplification programme and more active balance sheet and risk management.
Cushon serves around 650,000 members across approximately 21,000 employers. The majority of its revenues come from its master trust offering, which has close to £3 billion of assets under management and administration. This offering generated £17.4 million in revenue last year, accounting for 97% of its total revenues.
NatWest is reportedly working with advisers on the sale of Cushon. The details of the potential sale, including the identity of the potential buyers, have not been disclosed. However, Cushon has drawn interest from a significant number of strategic players in the pensions market.
The goal of the sale is for NatWest to manage at least £25 billion in defined contribution schemes by 2030. This ambition aligns with the government's recent major pensions reforms aimed at driving greater scale and reducing unnecessary bureaucratic expenses.
Under Mr. Thwaite, NatWest has considered a small number of larger-scale acquisitions, including that of Santander UK. However, the deal with Santander UK did not progress due to NatWest's determination to pay a price that would be deemed attractive by its shareholders.
NatWest Group returned to full private ownership earlier this year. Despite the ongoing negotiations, a spokesperson for NatWest Group stated that they do not comment on speculation and their focus remains on delivering for their customers. Detailed talks with potential buyers of Cushon are ongoing.
Cushon offers a range of products including workplace pensions, Junior ISAs, Lifetime ISAs, and General Investment Accounts. The sale of Cushon would reflect the strategic priorities of Paul Thwaite, NatWest's chief executive.
This news does not provide information about the performance or financial status of NatWest or Cushon. As the story develops, more details about the potential sale and the future of Cushon will be revealed.
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