THE IRISH brokerage network of Royal Liver Assurance subsidiary Citadel Financial Advice has been wound down, with the loss of 21 jobs.
As a result of the ongoing merger talks between the Royal Liver Group and its larger rival mutual society Royal London, Citadel’s network of self-employed brokers, which had in excess of 80 members, was shut down in December. At the time, 21 out of 29 support staff based in Citadel’s Dublin office were let go.
Since it was established in 2006, Citadel also bought six Irish broker firms, including Hegarty Financial Management in Dublin, and Cork-based McCarthy Investment Services. It is understood these brokerages may be sold off if a transaction with Royal London goes ahead, but according to a Royal Liver spokesman, no decision has yet been made in relation to the future of this arm of the business. “Citadel... will continue with its strategic review involving its six acquired brokers,” he said.
Royal Liver set up Citadel when it closed down the direct sale channel of its main Irish unit, Caledonian Life. Caledonian employs more than 70 people across its offices in Dublin, Cork and Limerick. It is not expected Caledonian would be negatively affected in the event of a merger.
“Caledonian Life appears to be regarded as a key part of any transaction between Royal Liver and Royal London, as it could potentially provide Royal London with a protection presence in Ireland, which it does not have at the moment,” the Royal Liver spokesman said.
Announcing its results for the first half of 2009, the Royal Liver group said its investment in Citadel had continued to suffer “the tribulations associated with the domestic economy”.
