As part of Rothesay Life’s preparations for the UK’s exit from the European Union (the “EU”), commonly known as “Brexit”, we concluded that it was necessary to transfer approximately 400 Irish annuity policies (our “Irish portfolio”) to an Irish insurance company. This transfer is necessary to ensure that payments under the affected policies can continue to be lawfully paid following the end of the Brexit implementation period agreed with the EU.
In March 2019 Rothesay Life entered into an agreement with Monument Re under which Monument Re agreed to acquire the Irish portfolio. The acquisition was structured initially as reinsurance to Monument Re and, subject to Court approval, would be followed by a transfer of the portfolio to its subsidiary, Monument Life Insurance DAC (formerly Laguna Life DAC). Monument Life is an Irish insurance company, authorised and regulated in the Republic of Ireland by the CBI.
The transfer will be carried out by way of a legal process in the UK known as a “Part VII transfer” under the UK’s Financial Services and Markets Act 2000 which allows the transfer of insurance business from one insurer to another. This process requires the approval of the High Court of Justice of England and Wales (the “Court”) which was received on 31 July 2020. The transfer is expected to take place on 7 September 2020.
How does this affect policyholders?
This is good news for the transferring policyholders because it means that their pension payments will not be disrupted by the end of the Brexit implementation period on 31 December 2020.
Whether or not your policy is being transferred to Monument Life, the terms and conditions of your policy/policies will not change as a result of the transfer.
All transferring policyholders will receive a welcome letter from Monument Life with further details.
More information on the transfer
If you would like to read the Court Order confirming the transfer has been approved or read the other documents regarding the transfer, please go to the Document Library.
You can also access the information regarding the proposed transfer that Monument Life has provided to its policyholders at: www.monumentregroup.com