NatWest looking to offload workplace pensions provider Cushon - report

(Sharecast News) - NatWest is reportedly looking to offload Cushon, the workplace pensions provider it bought only two years ago. According to Sky News, NatWest is working with advisers on a sale of Cushon, for which it paid £144m in exchange for a controlling stake.

City sources told Sky the bank was in detailed talks with a number of potential buyers of the business.

Cushon offers workplace pension products as well as a range of workplace ISAs, including Junior ISAs, Lifetime ISAs and General Investment Accounts.

NatWest's acquisition of the business was aimed at diversifying its non-interest income by offering Cushon's products to the bank's commercial and business banking customers.

Cushon serves roughly 650,000 members across approximately 21,000 employers.

Its master trust offering has close to £3bn of assets under management and administration, with £17.4m in revenue generated from this area last year - 97% of Cushon's total revenues, Sky said.

NatWest owns an 85% stake in Cushon, with the remainder held by the subsidiary's management.

A market source told Sky that Cushon had drawn interest from a significant number of strategic players in the pensions market amid a growing push for consolidation.

A NatWest Group spokesperson told Sky: "We do not comment on speculation.

"Our focus remains on delivering for our customers."