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. 

If you don't know whether your policy is transferring to Rothesay or to Legal and General, please contact us with your name and policy number. We can then let you know where we're intending to transfer your policy to.

Rothesay Life Plc

The High Court approved the transfer of annuity business from Scottish Equitable plc to Rothesay Life plc on 13 June 2017. The period for policyholder responses to the proposals is now closed. In accordance with the terms of the Scheme, the policies will transfer to Rothesay Life plc on 30 June 2017 (Transfer Date). All policyholders transferring to Rothesay Life plc can continue to contact Scottish Equitable plc until the Transfer Date.

Rothesay Life plc will be writing to all transferred policyholders with new contact details shortly after the Transfer Date. There will be no change to policy Terms and Conditions as a result of the transfer.

If you have annuity policies transferring to Rothesay we wrote to you in March with information on the transfer.  You can also find more information here.

We're also writing to with-profits policyholders about the transfer to Rothesay - here's more information on why the transfer is important to those customers.

Legal and General Assurance Society Limited

We applied to the High Court to transfer the business to Legal and General on 10 May 2017. If you have annuities policies transferring to Legal and General, we wrote to you with more information in May. You can also find more information here.

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.

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 and the remaining part to Legal and General 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. There is 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 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.

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 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

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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