File image: Independent Media

Johannesburg - FNB on Wednesday said 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 that all FNB Life insurance policies were now fully underwritten under the group life license.

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, CEO of FNB Life, said it was pleased with the approval of this transfer as it added another milestone to the bank's growth journey.

“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 in a statement.

“Going forward we aim to leverage economies of scale to deliver more value, cost effective and innovative products and services to our current and future client base.”

Bromfield said FNB Life customers could rest assured knowing that they would continue enjoying the same benefits and level of service, adding that the transfer would not lead to any changes in monthly premiums, charges, benefits as well as terms and conditions.