Part VII transfer
Annuities are a capital-intensive business under Solvency II. We knew there was a competitive market, and saw an opportunity to de-risk. [Rothesay Life] was crystal clear about what it could and couldn’t do. It felt like they had thought everything through and showed real expertise on the risks of an insurance-to-insurance transfer under Solvency II.Stephen McGee, Aegon UK’s chief financial officer
- ‘Part VII transfer of £6.4bn of annuity policies to Rothesay Life involving 187,000 policy holders
- The first Solvency II-compliant transaction approved by the UK PRA setting precedents for transitional arrangements
- Significant amount of the longevity risk was reinsured pre-execution
- Economic terms were locked in by agreeing the premium upfront and then converting to roll forward to lock-in capital release and terms
- In September 2015, Aegon commenced a process to de-risk its UK annuity portfolio
- On 11 April 2016, Aegon announced the sale of two-thirds of its UK annuity portfolio to Rothesay Life, equivalent to a premium of £6.4bn
- The transaction was structured initially as a reinsurance contract pending the legal transfer process regulatory and court approvals
- The Part VII Transfer was approved at a Hearing of the High Court 13 June 2017 and became effective at 00.01am BST on 30 June 2017
Rothesay Life News
18 July 2019
'BBB+' rating of Rothesay Life's recent Tier 3 issuance from Fitch and commentary from Moody's
Fitch has rated Rothesay Life's recently issued £300 million Tier 3 notes 'BBB+' and Moody's have released post-issuance commentary on Rothesay Life's leverage development and improved profitability during the first half of 2019.
12 July 2019
Moody's 'A3' insurance financial strength rating of Rothesay Life unchanged after periodic review
During its periodic review, Moody's reassessed the appropriateness of Rothesay Life's ratings. The 'A3' insurance financial strength rating of Rothesay Holdco UK Limited's main operating company, Rothesay Life Plc, remains unchanged.
5 July 2019
Rothesay Life has delivered strong first half 2019 performance
Rothesay Life Plc today updates on its H1 2019 trading performance.