Proposed transfer of certain annuities from The Prudential Assurance Company Limited to Rothesay Life Plc
In March 2018, Prudential plc announced its intention to demerge M&GPrudential, its UK and European savings and investments business, and to list it as an independent company on the London Stock Exchange. The company, now called M&G plc, was listed on the London Stock Exchange on 21 October 2019.
As an independent company, M&G plc is continuing its transformation into a more capital-efficient business, targeting growing demand for savings and investments solutions.
In support of this transformation, it proposed that approximately 370,000 annuity policies of The Prudential Assurance Company Limited would be transferred to Rothesay Life Plc by means of an insurance business transfer scheme (Scheme) under Part VII of the Financial Services and Markets Act 2000 (FSMA). For a small number of policies, where the policyholders are resident in either Jersey or Guernsey, there will also be equivalent insurance business transfer schemes in Jersey and Guernsey.
What are the next steps?
The transfer process is governed by Part VII of the Financial Services and Markets Act 2000.
The transfer required approval from the High Court of England & Wales. Following the conclusion of the approval hearing, the Judge declined to approve the transfer and we were given permission to appeal the judgment.
Having considered our position and taken appropriate legal advice, we can now advise that we lodged our notice of appeal with the Court of Appeal on 27 September 2019.
We decided to appeal having been advised that in reaching its decision to decline to approve the transfer, the High Court may have made material errors of law. We believe the High Court’s judgment should therefore be re-considered by the Court of Appeal.
The appeal process will take some time. The Court of Appeal has not yet set a timetable for the appeal process. However, we don’t expect the hearing to be before spring 2020, with the Court of Appeal’s judgment to follow later in the year.
We’ll continue to provide updates on our website. In due course this will include any key dates relevant to the appeal process. We’ll also update our recorded message on 0800 640 9164 (UK) and +44 203 755 9194 (overseas) as and when appropriate.
The current benefits, terms and conditions, and service for the policyholders covered by the proposed transfer are unaffected.
Check if your policy might be impacted
You'll need your 16 digit annuity policy number to hand which can be found on any correspondence we sent you. If you have more than one annuity policy, you will need to check each policy in turn. If you cannot find your annuity policy number please call us on
if calling from outside the UK. Our lines are open between 8.30am and 6pm, Monday to Friday, except on bank holidays.
More about Rothesay Life Plc
Rothesay Life Plc was established in 2007 and has become one of the largest specialist annuity providers in the UK market, with over £36bn assets under management and insures the annuities of over 770,000 individuals (as at 31 December 2018). Rothesay Life Plc is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. You can find out more by visiting www.rothesaylife.com/about-us .
In February/March 2019, we sent policyholder packs to those customers whose annuity policies might be transferring to Rothesay Life Plc. You can download copies of the documents included in those packs and other reports here:
This letter is specific to individual policyholders holding an annuity that it is proposed will transfer.
This letter is specific to Trustees of pension schemes holding an annuity that it is proposed will transfer.
This letter is specific to the members of certain pension schemes holding an annuity that it is proposed will transfer, where PAC has an agreement with the Trustees to contact such members directly.
This booklet, sent with the each of the letters above, contains a Questions and Answers section as well as a summary of the Scheme, a summary of the Independent Expert Report and a copy of the Legal Notice of Transfer.
This document reflects the changes made to the original Scheme Document that was submitted to the High Court for the directions hearing in January 2019.
This document sets out the Independent Expert’s analysis of the impact of the proposed transfer on policyholders. A summary of the Independent Expert Report is in the Policyholder Circular.
This document sets out the Independent Expert’s description of developments since publication of his main report dated 21 January 2019, including an updated assessment of the proposed transfer.
The Independent Expert’s letter of clarification regarding Guernsey Policies.
The Chief Actuary of The Prudential Assurance Company Limited (PAC) provides a report on the impact of the proposed transfer on transferring and non-transferring PAC policyholders.
The PAC With-Profits Actuary reports on the impact of the proposed transfer on transferring and nontransferring PAC with-profits policyholders.
Write to us at:
Prudential Customer Services
Call us on 0800 640 9164 or
+44 203 755 9194 if calling from outside the UK. Our lines are open between 8.30am and 6pm, Monday to Friday, except on bank holidays. Calls are free from UK landlines and mobile phones.