Investment - Articles - Rothesay Life purchase annuity portfolio from Prudential

 The transaction will result in a significant increase to Rothesay Life’s asset base to over £37bn. Following completion, Rothesay Life will be the largest specialist annuity insurer in the UK.

 This is Rothesay Life’s third reinsurance transaction of in-force annuities and further demonstrates the company’s ability to successfully deploy capital across all areas of the wholesale annuity and pensions market. Rothesay Life delivers clients financial certainty with execution excellence, provides policyholders long-term security and offers shareholders attractive value accretion. Established in 2007, Rothesay has been insuring defined benefit pensions and annuities for over a decade and with this transaction will be paying over £2bn each year to over 750,000 policyholders including from Scottish Equitable and Zurich Assurance as well as pension schemes such as British Airways, the Post Office, General Motors and Philips.

 Prudential policyholders will continue to be serviced by Prudential until the effective date of a Part VII Transfer. Thereafter, they will continue to receive their benefits in the normal way from Rothesay Life. Policyholders do not need to take any action.

 Addy Loudiadis, Chief Executive of Rothesay Life, said: "I am delighted that Prudential, one of the UK’s most respected insurance companies, has chosen Rothesay Life to secure its policyholders’ pensions over the long term in a landmark transaction for us and for the industry. This is a testament to the quality and strength of our business, our focus on customer service, our execution proficiency and the support we receive from our shareholders. We look forward to building on this success as we predict a very active pension buy-out pipeline ahead."