Transfer of certain annuities from The Prudential Assurance Company Limited (PAC) to Rothesay Life Plc (Rothesay)

Background

In March 2018, Prudential plc announced its intention to demerge M&G Prudential (now M&G plc), its UK & European business, and list it as an independent company on the London Stock Exchange. In support of the plan for M&G Prudential to demerge from its parent company, Prudential plc, PAC and Rothesay entered into an agreement to transfer certain annuities to Rothesay, and as an interim step, to reinsure these annuities to Rothesay pending Court approval of the proposed transfer.

The demerger took place in October 2019, and the demerged group is made up of M&G plc and its subsidiaries, including PAC. M&G plc and Rothesay continued with the transfer in accordance with the agreement entered into in March 2018.

PAC originally intended that approximately 370,000 annuities would be transferred to Rothesay by means of an insurance business transfer scheme under Part VII of the Financial Services and Markets Act 2000. By mid-2021, this number had reduced to approximately 350,000 because over time, the number of annuities in payment naturally reduces. For a small number of annuities, where policyholders are resident in Guernsey or the annuities are part of the business carried on in or from within Jersey, there will also be equivalent insurance business transfer schemes in Guernsey and Jersey.

The transfer requires approval from the High Court of England and Wales.

Transfer effective on 15 December 2021

The transfer process is governed by Part VII of the Financial Services and Markets Act 2000.

Following an approval hearing at the High Court of England and Wales between 8-10 November, the judge handed down his judgment on 24 November 2021 in which he approved the transfer, meaning all impacted annuities transferred to Rothesay on 15 December 2021.

We can reassure policyholders with annuities that have transferred that there are no changes to the benefits or to the terms and conditions of their annuities as a result of the transfer.

Rothesay has agreed with PAC that for a period of time PAC will continue to provide administration services regarding the transferred annuities. Impacted policyholders are being provided with a welcome letter by Rothesay which will include contact details and other useful information. You can contact Rothesay by:

  • Post: Rothesay, PO Box 3122, LANCING, BN15 5DA
  • Phone: 0345 072 2008 if you are calling from the UK or +44 20 3790 1150 if you are calling from overseas. Lines are open between 8.30am and 6.00pm, Monday to Friday (excluding bank holidays).
  • Email: enquiries@rothesaylifeplc.com

    Please note that email is not generally a secure method of communication so please limit the amount of personal information you include in your email. Please do include your policy number.

Check if your annuity was affected

You'll need your 16 digit annuity number to hand which can be found on any correspondence we sent you. If you have more than one annuity, you’ll need to check each annuity in turn.

More about Rothesay

Rothesay is the UK’s largest pensions insurance specialist, managing over £60 billion of assets and securing pensions for over 800,000 people. Purpose-built to protect pensions, their single focus is to secure pension annuities for the future.

As well as securing annuities transferred from other insurers, including Aegon and Zurich, Rothesay has secured pensions for some of the UK’s best known companies, including Allied Domecq, ASDA, British Airways, Cadbury’s, the Civil Aviation Authority, National Grid and the Post Office.

Rothesay is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For more information about Rothesay, please go to rothesay.com

Important 2021 documents

In Summer 2021, we sent a communication pack to those customers whose annuities have now transferred to Rothesay. You can find an example of the letter and  the information booklet included with the letter here as well as various reports:

This example letter is specific to individual policyholders holding a transferring annuity.

Download letter

This example letter is specific to trustees of pension schemes holding a transferring annuity.

Download letter

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’s 2021 Report and a copy of the Legal Notice of Transfer.

Download booklet

This document sets out the terms of the transfer.

Download document

This document sets out the Independent Expert’s analysis of the impact of the transfer on policyholders. A summary of the Independent Expert Report is in the Information Booklet.

Download report

This document sets out the Independent Expert’s description of developments since publication of his main report dated 13 July 2021, including an updated assessment of the proposed transfer.

Download document

The Chief Actuary of The Prudential Assurance Company Limited (PAC) provides a report on the impact of the transfer on transferring and non-transferring PAC policyholders.

Download report

This document provides an update to the main report dated 13 July 2021.

Download document

The PAC With-Profits Actuary reports on the impact of the transfer on transferring and non-transferring PAC with-profits policyholders.

Download report

This document provides an update to the main report dated 13 July 2021.

Download document

This is information for the Guernsey Scheme.

Download information

This is information for the Jersey Scheme.

Download information

This is information for the Jersey Scheme.

Download information

This is the information for the Prudential Regulation Authority’s Report to the Court for the 2021 Approval Hearing

Download information

This is the information for the Financial Conduct Authority’s Report to the Court for the 2021 Approval Hearing

Download information