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Rothesay Life announces buy-out of Rank Group pension scheme

28th February 2008

  • £700m deal is biggest pension scheme liability transfer to date in the UK
  • First transaction by Goldman Sachs’ pensions buy-out team

Rothesay Life, a wholly owned subsidiary of Goldman Sachs, today marks its formal entry into the pensions buy-out market and announces an agreement with The Rank Group Plc (“Rank”) to purchase the Rank Group Pension Scheme, which has assets of approximately £700m. The transaction is believed to be the biggest transfer of pension scheme liabilities in the UK to date.

Addy Loudiadis, Chief Executive of Rothesay Life, said: “We are delighted that Rank has chosen us for their pension scheme transfer. The Rothesay Life approach is to use our risk management and investment expertise to provide a tailored solution which meets the needs and obligations of all parties. The market for insurance based buy-outs of large pension schemes is developing rapidly. Companies and trustees are increasingly looking for effective solutions to transfer pension liability risk to specialist insurance providers. Rothesay Life is ideally placed to become a leading player in this market."

Peter Gill, Finance Director of Rank commented: "This transfer is the result of an extensive review that included consideration of several options and discussions with a number of interested parties. We believe that the chosen option and the transfer announced today represent the best outcome for all concerned. With the financial benefits that this transfer provides, Rank will be better placed to address its near-term challenges and to grasp its long-term opportunities. In addition, members of the scheme will benefit from the high level of security provided by Rothesay Life.”

Mike Samuel, Chairman of the Trustees, added: “Rothesay Life's proposal meets all our objectives. We believe that their model, backed by Goldman Sachs' strength and financial expertise, will provide a high level of security for scheme benefits and also an excellent administrative service for the 19,000 members."

Notes to the Editors

Rothesay Life

Rothesay Life is an insurance company established in the UK as a wholly-owned subsidiary of Goldman Sachs.Rothesay Life offers an insurance buy-out solution that enables companies to completely remove their exposure to defined benefit pension liabilities whilst providing members with a secure and orderly transition from their corporate pension scheme to a regulated insurance arrangement. Rothesay Life aims to provide the very best, tailor made buy-out solutions for all those concerned; pension scheme members, trustees and corporate sponsors.Rothesay Life aims to ensure that members receive the highest quality customer care and has appointed Watson Wyatt as an administration partner.

Keith Satchell Chairman

Former CEO of Friends Provident plc and a former Chairman of the Association of British Insurers.

Addy Loudiadis Chief Executive

Managing Director at Goldman Sachs, served as the co-head of the Goldman Sachs European Financing Group and co-head of the Investment Banking Group in Europe.

Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centres around the world.

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