Zurich signs agreement with Rothesay Life to reinsure an additional tranche of its UK annuity business
Zurich UK Life has signed an agreement to transfer a further tranche of its portfolio of immediate annuities to Rothesay Life. This follows the original transaction in May 2015 and the transfer of an additional tranche in December 2015.
Zurich has not actively marketed its annuity business since 2005, choosing instead to focus on growing its core business. This transaction is in line with Zurich's current strategy of actively managing its legacy business for value and exiting non-strategic markets.
This transaction takes Rothesay Life’s new business premiums written for the first half of 2016 to £6.5bn.
Commenting on the transaction Rothesay Life Chief Executive, Addy Loudiadis said: “Zurich and Rothesay have a long standing relationship and we are delighted to have completed another successful transaction. Rothesay Life has had a strong first half of 2016 and continues to prove its ability to acquire new annuity business through reinsurance and Part VII Transfers as well as in the defined benefit pensions market”.
“The deal is our fourth annuity risk transfer from another insurer since the start of last year and continues an increasing trend of legacy annuity books transferring to specialists such as ourselves.”
Jim Sykes, Chief Operating Officer, Zurich UK Life said: "We are pleased to have reached an additional agreement with Rothesay Life. This transaction protects our customers, reduces our risk exposure and is aligned with our strategy of focusing our resources on pursuing sustained profitable growth"