Zurich signs agreement to reinsure fourth tranche of its UK annuity business
9 January 2017
Zurich UK Life has signed an agreement to transfer a further tranche of its portfolio of immediate annuities to Rothesay Life. This is the fourth tranche including the original transaction in May 2015. A Part VII Transfer for policy holders included in all four tranches is expected to be completed in 2017.
Zurich has not actively marketed its annuity business since 2005, choosing instead to focus on growing its core business. This transaction is in line with Zurich's current strategy of actively managing its legacy business for value and exiting non-strategic markets.
This transaction takes Rothesay Life’s new business premiums written since the start of 2015 over £10bn and is part of an increasingly important source of new business, that being insurer to insurer transactions.
For further information, please contact:
Temple Bar Advisory
Alex Child-Villiers or William Barker - 020 7002 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 £1bn a year from over £22 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.