The newly-combined company will have around 6 billion pounds in assets under management, the firms said in a statement.

Family CEO Simon Markey will be chief executive and Engage Mutual’s Christina McComb will become chairman, they added.

Shock British pension reform has dented sales at life insurers this year, and was seen as a key factor behind Aviva (>> Aviva plc)'s recent $8.8 billion deal to buy Friends Life (>> Friends Life Group Ltd).

British mutual insurance group LV= [LV.UL] said on Thursday it had agreed to take over the majority of rival company Teachers Assurance.

(Reporting by Carolyn Cohn; editing by Clare Hutchison)

Stocks treated in this article : Aviva plc, Friends Life Group Ltd