Annuity business 

As part of a strategic review of our business, Aegon, the parent company of Scottish Equitable plc (SE) 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.

Rothesay Life Plc

We agreed to sell and transfer a significant part of our annuity business to Rothesay Life plc (Rothesay). The High Court approved the transfer of the annuity business from SE to Rothesay on 13 June 2017 and in accordance with the terms of the Scheme, the policies transferred to Rothesay on 30 June 2017 (Transfer Date). Find more information here.

The remaining annuity business is proposed to be transferred to Legal and general Assurance Society Limited (Legal and General). The transfers are individual legal processes - each needs separate approval by the High Court. 

We've also written to with-profits policyholders about the transfer to Rothesay - here's more information - on why the transfer is important to these customers.

With-profits policies aren’t included in the sale – 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-profits sub fund, and the fund’s financial strength will be improved. More information on the transfer and the impact on with-profits policyholders can be found in the report from the With-Profits Actuary (PDF)(Opens new window).

Legal and General Assurance Society Limited

We applied to the High Court on 10 May 2017, to transfer the bulk of the remaining annuity business to Legal and General. If you have an annuity policy transferring to Legal and General, we wrote to you with additional information in May this year. You can also find more information here.

The sanction hearing date for the proposed transfer to Legal and General is 30 August 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 of annuity policies to Legal and General.

The 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 to the High Court on the effects of the transfer on policyholders. There's a different Independent Expert for each transfer;
  • 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 materially disadvantaged by the carrying out of the transfer; and
  • High Court approval – the proposed transfer to both companies will be heard at the High Court of Justice, Chancery Division, the Rolls Building, Fetter Lane, London EC4A 1NL.

 

We have also written to our with-profits customers about the Rothesay transfer. 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

UK documents for those transferring to Rothesay Life Plc 

UK documents for those transferring to Legal and General

Documents applying to Jersey policyholders

Documents applying to Guernsey policyholders

  • Guernsey Scheme - full details of the proposed transfer for Guernsey policyholders transferring to Rothesay Life
  • Guernsey Scheme - full details of the proposed transfer for Guernsey policyholders transferring to Legal and General

Questions and Answers

Sample letters 

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)

The Chief Actuary of Legal and General has also written their own report on the effects of the transfer. Their report can be read on the Legal and General website(Opens new window)

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