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
10 September 2019
Rothesay Life New Business Update
Rothesay Life Plc today updates on its new business performance since 30 June 2019.
16 August 2019
Judgement on proposed transfer of annuity business from Prudential
Rothesay Life notes today the judgement of the High Court of England and Wales in connection with the proposed transfer of a portfolio of annuities from The Prudential Assurance Company Limited , a subsidiary of M&GPrudential, to Rothesay Life.
9 August 2019
Rothesay Life agrees £520m buy-in with the Cadbury Mondelēz Pension Fund
Rothesay Life, one of the leading life insurers specialising in providing de-risking solutions to UK defined benefit pension schemes, is pleased to announce that it has insured £520m of defined benefit liabilities for the Cadbury Mondelēz Pension Fund.