Proposed 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 are continuing 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 FSMA. This number has now 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. Following the conclusion of the original approval hearing, which was held in June 2019, the Judge declined to approve the transfer. We were given permission to appeal the decision and lodged our appeal in September 2019.

The appeal was heard in the Court of Appeal in October 2020 and the judgment was handed down on 2 December 2020. The Court of Appeal concluded that the original judge made errors in his approach in assessing whether the transfer should be allowed to go ahead. This means the High Court has been asked to assess the transfer again and make a new decision as to whether it should be allowed to proceed.

Current update – late July 2021

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

The High Court Directions Hearing took place on 23 July 2021 at which the detail and the process for the High Court Approval Hearing commencing on 8 November 2021 were confirmed.

There will be a hearing in the Royal Court of Jersey at 9.00am on 26 November 2021 and in the Royal Court of Guernsey at 11.00am on 29 November 2021 to consider whether to approve the equivalent insurance business transfer schemes in Jersey and Guernsey.

If you have an annuity which we’re proposing to transfer to Rothesay, it’s expected it’ll transfer on 15 December 2021, subject to approval from the High Court of Justice of England and Wales or, where appropriate, the Royal Courts of Guernsey and Jersey. The only change will be the provider of your annuity, which will become Rothesay. There will be no change to your benefits or to the terms and conditions of your annuity as a result of the transfer. 

You have the right to raise any concerns or object to the proposed transfer with us or the High Court.

We recommend that you call or write to us with any concerns or objections you may have about the proposed transfer, or if you intend to make representations to the High Court in writing, in person or through a suitably qualified legal representative. If you wish to object, it would be helpful if you could explain the reasons for your objection when you contact us. The correspondence we receive, and the transcripts of any objections raised by telephone will be provided to the High Court, the Independent Expert (who has been appointed to report to the High Court on the effects of the proposed transfer on policyholders) and our regulators (the Financial Conduct Authority and the Prudential Regulation Authority). The High Court will consider them in deciding whether it’s appropriate to approve the transfer.

Alternatively, you can write to the High Court at the Rolls Building, Fetter Lane, London EC4A 1NL using the reference CR-2018-003686, or you can appear in person or through a suitably qualified legal representative at the hearing commencing on 8 November 2021. If the date of the hearing changes we’ll update the details on this website.

All previous objections to the proposed transfer will automatically be shared with the Courts, the Independent Expert and our regulators for consideration, unless withdrawn. Any person who wishes to withdraw, amend or update their objection should notify PAC by calling or writing to them using the contact details shown below.

If you believe you may be adversely affected by the proposed schemes in Guernsey or Jersey, you have the right to be heard, in person or via an Advocate at the hearing of the Royal Court of Guernsey and/or the Royal Court of Jersey, as appropriate. If you wish to make a representation about  the transfer in Guernsey or Jersey in person, or by an Advocate, or by making written representations, you are asked to call or write to us as soon as practicable, stating that your representation relates to the scheme in Guernsey and/or Jersey.

Check if your annuity might be transferred

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

0800 640 9164 or +44 203 755 9194 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.

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

We’re sending a communication pack to those customers whose annuities are proposed to transfer to Rothesay. You can find copies of those documents included in the pack here:

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

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

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

Download report

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

Contact us 

Post: 

Write to us at:
Rothesay Transfer
Prudential
PO Box 3122
Lancing
BN15 5DA

Phone: 

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.

Secure Message:

Send us a secure email from our website. Please visit pru.co.uk/prumail

Email:

Email us directly at annuitytransfer@prudential.co.uk

(please note sending an email to this address is not a secure method of communication; if you are including any personal or sensitive information, such as your address, we suggest you use our secure email or one of the other methods).

Archive documents from 2019

This letter is specific to individual policyholders holding an annuity that it is proposed will transfer. 

Download letter

This letter is specific to Trustees of pension schemes holding an annuity that it is proposed will transfer.

Download letter

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.

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 Report and a copy of the Legal Notice of Transfer.

Download circular

This document sets out the terms of the proposed transfer.

Download document

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.

Download document 

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.

Download report

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.

Download document

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.

Download report

This document provides an update to the main report dated 18 January 2019.

Download document 

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

Download report

This document provides an update to the main report dated 18 January 2019.

Download document

This is information for the Jersey Scheme.

Download document

This is information for the Guernsey Scheme.

Download document

This is information for the Jersey Scheme.

Download document