Rothesay Life writes over £1bn of new business volumes in 2012, passing £10bn of new business written to-date by completing a buy-in with the General Motors UK Retirees Pension Plan.
Rothesay Life, the specialist provider of annuity-based solutions that insures the trustees and sponsoring employers of UK corporate pension funds against all or a portion of the risks associated with paying UK defined benefit pensions, announces that:
♦ Rothesay Life has written over £1 billion of new bulk annuity business in 2012
♦ Rothesay Life’s new business written to-date passed £10 billion, more than any other dedicated bulk annuity insurer
♦ Rothesay Life has entered into a £230 million bulk annuity transaction with the General Motors UK Retirees Pension Plan (the “GM UK Plan”), securing the pensions of all 11,000 members of the GM UK Plan
♦ Rothesay Life reports a strong pipeline of credible transaction opportunities, expected to produce a flow of new business to underpin its appetite for larger, more bespoke transactions
Rothesay Life’s growth has been founded on an innovative low risk approach to managing insurance risks that is well-suited to managing long term annuity risks. This has proved to be stable and resilient to market volatility in recent years and positions the business well for the introduction of the expected new Solvency II legislation
Addy Loudiadis, CEO, Rothesay Life, said: “We are delighted to have exceeded £10bn of total business written since Rothesay Life was established in 2007. We focus on risk management in providing long term security to all our policyholders. In completing such transactions, we pride ourselves on providing good value to pension schemes and delivering what we commit to, through an efficient and transparent execution process.
“We see continued strong demand from many pension funds for 2013 and beyond, in part driven by a current trend for funds to use their UK gilts to purchase bulk annuities. This switch allows them to pick up other protections, such as longevity risk removal and interest rate hedging, providing a closer match to liabilities with little impact on overall returns.”
Clive Wellsteed, Lane Clark & Peacock (adviser to the Trustee of GM UK Plan), said: “Rothesay Life ensured execution certainty for our client from the point they were selected as preferred provider through a competitive process run by Lane Clark Peacock. Key attractions of the solution included stable transaction economics for the Trustee and a clear process to deliver the desired commercial terms.”
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