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Rothesay Life Announces £100m Debt Investment

8th February 2013

The investment by MassMutual, a leading U.S. mutual life insurer, reflects the continuing strength and successful growth of Rothesay Life.

  • £100m perpetual subordinated debt investment
  • Investment confirms the strength of Rothesay Life’s business model
  • Rothesay Life is a secure standalone insurance company, wholly owned by Goldman Sachs

Rothesay Life, a leading life insurer specialising in providing de-risking solutions to UK defined benefit pension schemes, is pleased to announce a £100m investment in perpetual subordinated debt by Massachusetts Mutual Life Insurance Company (MassMutual).

Rothesay Life wrote over £1bn of new bulk annuity business in 2012, including contracts with the Merchant Navy Officers Pension Fund (“MNOPF”) and General Motors (GM) UK Retirees Pension Plan. Rothesay Life has now passed the milestone of more than £10bn of business written, more than any other dedicated bulk annuity insurer.

Rothesay Life has a strong continued appetite to offer large, bespoke solutions as well as for mid -market transactions (£100m to £500m). It has a healthy pipeline of new transaction opportunities, which are expected to produce a robust flow of new business in 2013.

The investment by MassMutual replaces existing debt at Rothesay Life. Goldman Sachs remains Rothesay Life’s sole shareholder.

Addy Loudiadis, CEO, Rothesay Life, said: “We are delighted that MassMutual, a major US financial institution, is making a £100m debt investment in Rothesay Life. This investment represents a significant vote of confidence in Rothesay Life’s business, in particular, on our rigorous risk management.”

M. Timothy Corbett, Executive Vice President and Chief Investment Officer at MassMutu al, said: “As part of MassMutual’s investment strategy, we seek to generate competitive long-term results for our policyowners. Demand for risk management from UK defined benefit pension schemes offers significant growth opportunities, and our investment in Rothesay Life supports our view that the company is well-positioned to capitalise on this opportunity.”


Temple Bar Advisory Limited: +44 (0)20 7002 1080 or +44 (0)7795 425580
Alex Child-Villiers or Alina Ulkina

About MassMutual

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders consistently since the 1860s. With whole life insurance as its foundation,

MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company’s strong and growing network of financial professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.

About Rothesay Life

Rothesay Life was established in 2007 and has become the leading UK provider of regulated insurance solutions in the market for pensions de-risking, with over £10 billion of liabilities. In 2012, Rothesay Life wrote over £1 billion of new bulk annuity business and paid an aggregate of over £400m of pensions to its policyholders.

The strong growth of the business has been achieved through the steady accumulation of pension scheme clients and the acquisition of Paternoster in 2011.
Existing Rothesay Life clients including the pension schemes and their members associated with such names as RSA, British Airways, P&O, Rank, Uniq, General Motors and MNOPF (Merchant Navy Officer Pension Fund).

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 owned by The Goldman Sachs Group Inc, but is separately capitalised un der UK insurance regulation. Rothesay Life is authorised and regulated by the UK Financial Services Authority.

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