This Q&A was prepared for Rothesay policyholders as part of the Part VII process.
Please note this Q&A is provided here for information only. This transfer was approved by the High Court on 14 May 2025 with effect from 11 June 2025. Policyholders can no longer raise objections to the transfer.
- What, in summary, is being proposed?
Scottish Widows is proposing to transfer the bulk purchase annuities part of its long-term business to Rothesay. Following a selection process, they have trusted Rothesay with their Transferring Policyholders. The Transferring Business comprises the bulk purchase annuity policies issued by Scottish Widows (pursuant to bulk purchase annuity policies) in respect of pension schemes, individual annuity policies issued by Scottish Widows in respect of pension scheme members and/or contingent beneficiaries, residual risk policies and certain longevity insurance agreements, , and associated assets and liabilities. The policies comprised in the Transferring Business are the same as those that Rothesay would also typically write.
- Why is the transfer being proposed?
Following a strategic review, Scottish Widows made the decision to sell the Transferring Business given its differing nature to the rest of their retail consumer-focused businesses. For Rothesay, the acquisition of Transferring Business represents Rothesay’s sixth acquisition of in-force annuities, further demonstrating the strength of our capabilities in this part of the pension risk transfer market.
- Will my policy move to Scottish Widows?
No, Scottish Widows is transferring the bulk purchase annuities part of their long-term business to Rothesay. The proposed transfer does not affect your Rothesay pension benefits. Your policy with Rothesay will remain with Rothesay.
- Will the benefits that I am entitled to, as a policyholder of Rothesay, change in any way?
No, there will be no changes to your benefits as a result of the transfer.
- How does the transfer happen?
Provided that the High Court approves the proposed transfer, the transfer will be carried out by a legal process used to transfer insurance businesses in the UK. This process is known as a Part VII transfer.
- When will the transfer happen?
In order for the proposed transfer to happen, it must be approved at the Sanction Hearing in the High Court. The date for the Sanction Hearing is expected to take place on 14 May 2025.
If there is any change to the date of the Sanction Hearing due to unexpected circumstances, we will publish the new hearing date this page of our website. Should the High Court approve the transfer at the hearing, the transfer is expected to take effect on the Scheme Effective Date. More details will be provided when available.
- What happens if the High Court does not approve the transfer?
If the High Court does not approve the proposed transfer, the transfer will not happen. If this happens, Scottish Widows will continue to administer the Transferring Business.
Rothesay will continue to administer the Rothesay policies and pension benefits whether or not the transfer happens, as these policies and benefits are not part of the proposed transfer.
- How do I obtain more information?
If you have any questions, please contact us.
- What am I required to do now?
You do not need to take any action in connection with the transfer.
However, if you believe you will be adversely affected by the proposed transfer, you have the right to object as detailed above.