Insurer Royal London has sold its platform business Ascentric to investment manager M&G plc (M&G).

The sale follows the completion of Bath-based Ascentric’s re-platforming in 2019 and the conclusion of a comprehensive strategic review led by Royal London’s CEO Barry O’Dwyer.

Ascentric, which Royal London acquired a majority holding of in 2007, is a digital wrap and wealth management platform for advisers with assets under administration of £14bn, around 1,500 adviser relationships and over 90,000 underlying customers.

It became a wholly owned subsidiary of Royal London in 2014, and as of March this year had £14bn assets under administration (unaudited).

O’Dwyer said the sale was part of a strategic review.

“The business has been performing well following its re-platforming and we sought an outcome that would take it to its next phase of growth,” he said.

“We believe that a sale to M&G delivers this for Ascentric and I am pleased to have found a buyer who has a strong commitment to Ascentric’s client and customer base and who is looking to further grow the business. I would like to thank the Ascentric team for their contribution to building a valuable business over the past years.

“At Royal London we still remain firmly committed to the adviser market as we drive through a major digital transformation programme and develop new capabilities to help advisers better meet the needs of their customers.”

Rob Regan, CEO of Ascentric called the deal “compelling.”

“It is very clear that M&G is aligned with our values and ethos and represents a good home for our advisers, strategic partners and staff,” said Regan.

“M&G is well-placed to take us on the next stage of our journey leveraging its scale to grow the business. We look forward to working with M&G to support our clients and customers going forward as well as through the transition from Royal London’s ownership.”

The deal is subject to regulatory approval.