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IFG Group and Sentinel announce the launch of Seniors Money
Date: 09-01-2006
Source: IFG Group plc
Sentinel/ IFG deal paves the way for huge growth in post retirement finance following launch of Seniors Money Ireland
In New Zealand, Sentinel has captured a staggering 94% market share in less than 12 months.
Dublin, Ireland, 9th January 2006
The IFG Group and Sentinel, Australia and New Zealand’s leading senior’s finance company, have announced the launch of Seniors Money as Ireland’s newest and most flexible provider of cost effective retirement funding.
The Seniors Money 60plus Loan is modelled on the home equity release product offered by Sentinel in Australia and New Zealand. This product has enjoyed a high degree of success in both Australia and New Zealand where it proved to be the catalyst that revolutionised the post-retirement income market and where the take-up has been extremely strong.Ireland is the first of a number of European countries where Sentinel plans to launch the product and Sentinel Europe will be headquartered in Dublin.
According to Richard Coon, Global Managing Director of Sentinel, “We chose Ireland as our launch pad into Europe because we see a gap in the market for our flexible, variable rate product and because Ireland and New Zealand share incredibly similar demographics and home ownership cultures. IFG was the natural distribution partner for Sentinel because it is one of Ireland’s largest independent financial advisory networks and leaders in the independent mortgage market.”
Unlike existing products in the Irish market, which require the borrower to sell a share of their home or commit to a long-term, fixed interest contract with penalties for early repayment, the Seniors Money 60plus Loan offers enormous flexibility in how the loan can be drawn down and repaid.
In New Zealand, Sentinel’s product was met with enthusiasm from many seniors and the company has captured a staggering 94% market share in less than 12 months. Comparisons in the New Zealand and Irish markets show high levels of correlation with similar attitudes to property and inheritance. New Zealand’s market for post retirement equity release was estimated to be less than NZ$10m in 2003, but has now grown to over NZ$150m in approximately 18 months.
IFG’s strong market position and local knowledge coupled with Sentinel’s more flexible and cost-effective product should enable the Seniors Money 60plus loan achieve a significant market share here in Ireland.
Commenting on the deal, Mark Bourke, CEO of IFG Ireland said, “We at IFG were conscious that the majority of people don’t appear to be attracted to the current products available in the retirement finance market which include fixed rate products as well as the less favoured home reversionary schemes. Sentinel’s success in other markets is remarkable after having developed an almost ideal flexible solution which we believe will enable many seniors to borrow against their property assets in an efficient manner without impacting on the ownership (or capital appreciation) of that property and still retaining a significant proportion of their home’s value.” Senior’s Money believes that a significant opportunity exists to offer creative solutions to fund retirement needs. Recent government action in Ireland has focused attention on what is commonly referred to as the “pension gap” and a series of initiatives are being examined which range from providing care programmes for the elderly in their own home through to the government providing a facility to mortgage ones property to the state. Stephen Gunning, Sentinel’s European CEO, said, “We estimate that the post retirement income market in Ireland is less than €50m at present, but predict that with more flexible solutions such as the Seniors Money 60plus Loan, it will grow exponentially to €150m within 12 months and to over €1b within 10 years” The concept Experience from Australia and New Zealand indicates that most people over 60 feel that they generally have enough for day-to-day living but have no cushion for unexpected expenses or, indeed, lifestyle enhancement. In the meantime they do actually possess something very valuable – i.e. the value tied up in their house. The Seniors Money 60plus Loan solves this dilemma by enabling people over 60 to release some of this value whilst still retaining full ownership and the bulk of the property value for the future. This form of retirement finance represents one of the few real choices available to those over 60, as it enables people to retain total ownership and still leave some money for the future. Lifetime savings come in many different formats; Pension funds, Shares, Cash and Property. While your house is also where you live, it is now possible to withdraw some of its value without significantly impacting on your children’s inheritance and still retaining sole ownership. For further information please contact: Gerry Newe Ireland is the first of a number of European countries where Sentinel plans to launch the product and Sentinel Europe will be headquartered in Dublin.
Seniors Money
1890 73 64 67
www.seniorsmoney.ie
IFG Group acquire Jersey bank
Date: 04-01-2006
Source: IFG Group plc
IFG Group plc is pleased to announce that it has acquired, through its subsidiary IFG Trust (Jersey) Limited (“IFG Trust”), the entire issued share capital of Bank of Scotland Trust Company (International) Limited (“BofS Trust Co”), a company based in Jersey.
BofS Trust Co provides trust and company administration services primarily for UK and European clients and has some 269 companies, trusts and other entities under administration. These client entities have total underlying assets of approximately Stg£340 million.
The consideration will be a maximum of Stg£6,800,000 (€10,015,465), of which Stg£6,591,623 (€9,708,554) has been satisfied in cash upon completion. The balance will be satisfied in cash upon the completion of audited accounts for the year ending 23 December 2005 and will be an amount equivalent to profits before tax for the period 1 December 2005 to 22 December 2005.
The business of BofS Trust Co will be integrated into IFG Trust’s activities and will operate under IFG’s International Trustee and Corporate Services Division, consolidating IFG’s position as one of the leading independent offshore corporate service providers.
BofS Trust Co’s strength in the UK and European market complements the existing IFG International Divisions business which is particularly strong in the North American and Far Eastern Markets.
In the year ended 24 December 2004, the last date to which audited accounts were prepared, BofST Trust Co had turnover of Stg£1,343,000 (€1,978,054) and profit on ordinary activities before tax of Stg£659,000 (€970,616). Net assets acquired on completion were Stg£3,091,623 (€4,553,535), of which cash and bank balances were Stg£2,824,950 (€4,160,763).
The acquisition agreement contains warranties and indemnities in favour of IFG Trust.
IFG Group launch IFG Spain
Date: 03-01-2006
Source: IFG Group, Dublin, Ireland
The IFG Group Plc has today announced the launch of its first dedicated overseas one stop advice shop, for customers who wish to buy, sell or own property in the Spanish Market. It will also provide customers with a full service property review with regard to tax and assistance with mortgages and insurance.
It is estimated that of the 50,000 or so Irish who have bought property in Spain over the last 10 years, most Irish people appeared to have relied on the property developer or agent’s recommended lawyer or have chosen to complete the purchase without any form of independent legal advice. This practice is in sharp contrast to the situation in the Irish market where it is almost unheard of for a property transaction to take place without independent legal and financial advice on both sides.
Research conducted by IFG Spain would also suggest that a significant proportion of Irish property owners in Spain are unknowingly not tax compliant. While the Spanish revenue authorities haven’t yet conducted any major tax clampdowns and investigations similar to that in Ireland, it appears to be only a matter of time before thousands of Irish property owners are faced with significant tax bills (complete with interest and penalties) and in worst cases even the forfeiture of their Spanish property.
The launch of IFG Spain (which is part of the IFG group) is in direct response to the growing need for clear independent consumer support both at the time of purchase and on an on-going basis. The Marbella and Dublin based operation will act as an umbrella service for Irish and British owners of Spanish property.
IFG Spain, will offer assistance in relation to the following property issues to its clients:
- Tax Issues
- Buying or selling a property in Spain
- Spanish mortgages
- Inheritance issues
- Title issues
- Insuring a property
- Banking Requirements
- Transferring money
- Paying Bills
- Dealing with utilities
According to Elaine Higgins, Managing Director of IFG Spain, “More Irish people than ever before are choosing to buy a property abroad and whether it’s for use as a holiday home or as an investment – there are a number of issues that need to be dealt with at various stages. Getting legal, tax and administration issues sorted is imperative if the ownership is going to be hassle free. ”
The new services offered by IFG Spain will be made available to existing owners of Spanish property and will also act as a one-stop shop for those considering an investment in the future.
Executive Chairman of IFG Ireland, Frank Ryan, says “Providing consumers with overseas financial planning and legal expertise is a natural progression from our nationwide property finance operation in Ireland. An essential part of the service for customers who wish to buy in Spain is to protect Irish people against the significant pitfalls of buying in an unfamiliar market.”
Registered in the Republic of Ireland No. 21010
Registered Office: IFG House, Booterstown Hall, Booterstown, Co. Dublin
Tel: + 353 (0)1 2752800 | Fax: + 353 (0)1 2752801
Email: group@ifg.ie