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Rothesay Life 2015 Half Year Financial Results and Business Highlights

Rothesay Life is one of the leading providers of bulk annuities and de-risking solutions for defined benefit pension schemes and other life insurers in the UK. Today the company announces its results and business highlights for the six months ending 30th June 2015.

Financial Highlights

  • The Group delivered strong origination performance with £1.9bn of New Business written, including a reinsurance transaction with Zurich Assurance Limited and a bulk annuity with the Lehman Brothers Pension Scheme
  • IFRS profit before tax of £176m, driven by a combination of high quality new business, cautious investment management and profits from the existing portfolio
  • Assets under management increased by 10% from  £12.8bn at 31 December 2014 to £14.1bn
  • Market Consistent Embedded Value (MCEV) of £1.4bn

Business Highlights 

  • Milestone in new business acquisition: The deal with Zurich is the Group’s first reinsurance transaction of a block of in-force annuity policies by the Group from another life insurer.  The Group has now demonstrated its capability to originate wholesale annuity business across the full spectrum of deal structures: bulk annuities, reinsurance/Part VII transfer, acquisition of life companies and longevity swap hedges. 
  • Investment innovation: The Group continues to invest cautiously including making loans secured on large low-risk collateral portfolios such as UK residential ground rents and was the sole investor in the first Consumer Price Index linked bond issued in the UK for the Greater London Authority.

Commenting on Rothesay Life’s results Addy Loudiadis, Chief Executive Officer, said: 


“I am pleased to be able to announce that in the first half of 2015 Rothesay Life has continued to build on its strong performance in 2014. By selectively pursuing new business across the opportunity set and investing carefully, we have further demonstrated the robustness of the Group’s business model and I remain optimistic about the breadth of growth opportunities available to us”.

Contact details

Temple Bar Advisory

Alex Child-Villiers or William Barker 0207 002 1080

About Rothesay Life

Rothesay Life was established in 2007 and has become one of the leading providers of regulated insurance solutions in the UK market for pensions de-risking, making payments of around £700m a year from over £18 billion of insurance contracts. This strong growth has been achieved through the steady accumulation of pension scheme clients, significant strategic acquisitions and the reinsurance of in-force annuity portfolios.

Existing Rothesay Life clients include the pension schemes and members associated with such names as RSA, British Airways, Rank, Uniq, General Motors, the MNOPF (Merchant Navy Officers Pension Fund), InterContinental Hotels, Philips, GKN, Lehman Brothers, Zurich Assurance and the Civil Aviation Authority.

Rothesay Life is a secure long-term provider of pensions, focused on

  • a flexible and committed approach to execution;
  • ongoing risk management to maintain balance sheet strength; and
  • robust operational processes.
Rothesay Life is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.