Rothesay Life announces biggest ever pension buy-in deal

14th July 2009

In a ground-breaking arrangement, Rothesay Life today announces the completion of a transaction involving insurance of £1.9bn of pension liabilities of the UK Pension Schemes of RSA Insurance Group plc (RSA). This amount, reflecting over 55% of the total current pensioner benefits, is the largest deal seen in the pension fund buy-out market. The transaction was designed and executed by Rothesay Life and Goldman Sachs International.

The transaction is structured as an insurance contract covering the liabilities, under which the trustees retain ownership of the assets, comprising gilts and UK government guaranteed bonds. This arrangement provides a high degree of security for the Schemes.

Addy Loudiadis, Chief Executive of Rothesay Life, said: "This is a fantastic vote of confidence in Rothesay Life as a secure home for companies' pension liabilities. RSA and their trustees had very specific requirements, and we are delighted to have been able to design and complete execution of an innovative, secure structure to meet their needs.” She continued: “Our financial strength and capital backing, together with our expertise in designing bespoke solutions for pension schemes, put us in an excellent position as the pension buy-out market continues to develop over the next few years."

Ends

Notes to Editors

1. RSA’s main UK pension schemes have completed fully collateralised asset swap and longevity insurance contracts with Goldman Sachs International and Rothesay Life, covering a portion of the Schemes’ liabilities to pay pensions. Further details can be found in the RNS from RSA released today and entitled “RSA an nounces next stage of UK defined benefit pension schemes de-risking”.

Rothesay Life

Rothesay Life is an insurance company established in the UK as a wholly-owned subsidiary of Goldman Sachs and is regulated by the FSA.

Rothesay Life aims to provide tailor-made solutions for pension schemes seeking to mitigate their exposure to longevity risk, thereby meeting the requirements of pension scheme members, trustees and corporate sponsors.

Keith Satchell Chairman

Former CEO of Friends Provident plc and former Chairman of the Association of British Insurers.

Addy Loudiadis Chief Executive

Managing Director at Goldman Sachs, she served as the co-head of the Goldman Sachs European Financing Group and co-head of the Investment Banking Group in Europe.

www.rothesaylife.co.uk

Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centres around the world.

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