Proposed transfer of annuity business from The Prudential Assurance Company Limited
The judgement of the High Court of England and Wales (“the High Court”) in connection with the proposed transfer of a portfolio of annuities from The Prudential Assurance Company Limited (“PAC”), a subsidiary of M&GPrudential, to Rothesay Life was handed down on 16th August 2019.
Rothesay Life and PAC entered into a reinsurance transaction covering a £12.0bn portfolio of annuities on 14th March 2018, with the expectation that this would be followed by an insurance business transfer under Part VII of the Financial Services and Markets Act 2000. The High Court has however declined to sanction the transfer. Rothesay Life is disappointed by the High Court’s decision. The terms of the transfer were reviewed by an independent expert, who was appointed to report to the High Court, who concluded that it would not result in any material adverse effect on policyholders’ security or benefits. Additionally, neither the PRA nor the FCA objected to the transfer. The reinsurance transaction agreements contain provisions to address this outcome and whilst it is not the preferred or optimal outcome for either party, it will not have a material impact on Rothesay Life as a whole. Rothesay Life and PAC are committed to a long term relationship irrespective of the outcome of the proposed insurance business transfer.
Rothesay Life and PAC have been granted leave to appeal by the High Court.
We look forward to continuing our strong relationship with M&GPrudential.
How does this affect Rothesay Life Policyholders?
If you have a Rothesay Life policy, you do not have to take any action. There will not be any change in the way that your Rothesay Life policy is operated. The same dedicated pensions team continues to look after the administration and, if applicable, payment of your pension.
For more details of this proposed transfer, please see the materials provided in the Document Library.
To access the Document Library: CLICK HEre
Contacting us with queries
If you are a current Rothesay Life policyholder and require further contact details please click on this link: Contact Us
If you are a Prudential policyholder please refer to the information provided at: www.pru.co.uk/annuitytransfer