Proposed transfer of annuity business
As part of a strategic review of our business, Aegon, the parent company of Scottish Equitable plc has decided to leave the annuity market.
Annuities haven’t been a key market for Aegon since 2010 and its decision to leave the annuity market entirely will allow Aegon to focus on the continued growth of its pre-retirement solutions.
We're proposing to transfer the majority of our annuity policies to Rothesay Life plc (Rothesay) and the remainder to Legal and General Assurance Society Limited (Legal and General). The transfers are separate legal processes - each need separate approval by the High Court.
We applied to the High Court to transfer the business to Rothesay on 17 February 2017. If you have annuity policies transferring to Rothesay we'll be writing to you in March with more information. You can also find more information here(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)
We're also writing to with-profits policyholders about the transfer to Rothesay - here's more information(Opens new window)(Opens new window)(Opens new window) on why the transfer is important to those customers.
We expect to apply to the High Court later in the year to transfer the remaining policies to Legal and General and will be writing to those policyholders at that time.
If you have any concerns about the proposals or feel you may be disadvantaged, please contact us using any of the details on this page.
If you're a with-profits policyholder, read more about why the transfer is important to you (Opens new window)(Opens new window)(Opens new window)
As a result of the review, Scottish Equitable plc has agreed to sell and transfer a significant part of its annuity business to Rothesay Life plc. We also intend to transfer the remaining annuity business later in the year to Legal and General Life Assurance Society Limited.
The transfer won’t affect the terms and conditions of any annuity policy and there will be no changes to benefit levels, payment timings or frequency. The basis of any escalations that apply to your policies will stay the same.
You don't need to do anything unless you want to object to the proposed transfer – any policies will automatically transfer over if the proposal is accepted. However, if you have more than one annuity policy, you’ll get more than one letter - please make sure you read them carefully.
We’re writing to all of our annuity customers to let them know where their policy is moving to.
The proposed transfer process protects our policyholders in a number of ways to make sure they’re not materially adversely affected – these protections include:
- the appointment of an Independent Expert who reports on the effects of the transfer on policyholders – have a look at a summary of his conclusions ;
- ongoing review by our regulators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) until the proposed transfer date;
- advance notification of the proposed transfer to our affected policyholders – you can view our letters in the panel below;
- your right to object to the proposed transfer if you consider that you would be disadvantaged by the carrying out of the transfer; and
- High Court approval – the proposed transfer will be heard at the High Court of Justice, Chancery Division, the Rolls Building, Fetter Lane, London EC4A 1NL on 12 June 2017. The Court will consider the views of policyholders, the Independent Expert and the regulators before reaching a decision on whether to approve the proposed transfer.
We’re also writing to our with-profits customers. With-profits policies aren’t included in the sale and won’t be transferring – these policies will stay with Scottish Equitable plc.
However, as a result of the sale and transfer, the risks and any rewards related to the annuity business will be removed completely from the with-profit fund, and the fund’s financial strength will be improved. More information on the improvement in financial strength can be found in the report from the With-Profits Actuary (Opens new window)
Read on to find out more about what it means for you
- Legal notice – the statutory notice of intent to transfer
- Summary of the Scheme – summarised key details of the proposed transfer (also applies to Jersey and Guernsey policyholders)
- Full Scheme - full details of the proposed transfer (also applies to Jersey and Guernsey policyholders)
- Summary of the Independent Expert's report - summarised key details (also applies to Jersey and Guernsey policyholders)
- Independent Expert’s report –the Independent Expert’s view of how customers will be affected (also applies to Jersey and Guernsey policyholders)
- Scottish Equitable plc Chief Actuary’s report – the Chief Actuary’s view of how customers will be affected
- Scottish Equitable plc With-Profits Actuary's report - the With-Profits Actuary's view of how customers will be affected
Documents applying to Jersey policyholders only
- Jersey representations and Jersey Scheme - full details of the proposed transfer for Jersey policyholders
Documents applying to Guernsey policyholders only
- Guernsey Scheme - full details of the proposed transfer for Guernsey policyholders
Questions and Answers
The Chief Actuary of Rothesay Life plc has also written their own report on the effects of the transfer. Their report can be read on the Rothesay website(Opens new window)
Please note that Aegon take no responsibility for the content of external sites.