British insurer Standard Life CEO Sandy Crombie says consolidation is not an option, according to a Reuters report. The insurer, the U.K.’s fourth-largest life insurer by market value, will continue to pursue organic growth, and has no plans to see its underperforming Canadian operation or its banking business.
“We have a very different business model from the rest of the sector and are not attracted in the main to looking at what they’re doing, or heading backwards into their business model,” Crombie told Reuters in an interview. “You would expect us to continue to look for organic means of growth as our primary strategy for the future.”
Crombie quells speculation over the consolidation which has plagued the company since entrepreneur Clive Cowdery last year launched acquisition vehicle Resolution, which aims to acquire and restructure life insurers and asset managers.
Crombie said profitablity merging life insurers was difficult because their reliance on tailor-made computer systems reduced operations cost savings significantly.
Crombie is due to retire once Standard Life completes an ongoing search for his successor. The company believes that once he steps down, he might take on another major role in the firm.
“In my mind I’m not retiring. I feel fit, healthy and vigorous, and wanting to be involved in a significant way,” he said. “I’ve just kept an open mind about what might be next for me.