If you’re a with-profits policyholder

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 the decision to leave the annuity market entirely allows us to focus on the continued growth of our 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 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). Here is more information.

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. 

Part of the business transferred to Rothesay was written in the SE With-Profits Sub-Fund.

With-profits policies aren’t included in the transfer and will stay with Scottish Equitable plc.

Why is this important for me?

It’s important to you because you’re invested in the With-Profits Sub-Fund, and as a result of the transfer, the risks and any rewards related to the annuity business will be removed completely from the With-Profits Sub-Fund (WPSF), and the fund’s financial strength will be slightly improved.

We’ll be making changes however, to the Principles and Practices of Financial Management (PPFM) which governs the WPSF.  Although there will be no material changes to the way the Scottish Equitable SE WPSF is managed or governed.

We’ll update the PPFM (PDF)(Opens new window) following the transfer and make it available online from 1 October 2017.

Scottish Equitable Policyholders Trust Limited (SEPT), our With-Profits Committee will continue to provide independent oversight in relation to the management of the WPSF.

The Chief Actuary and the With-Profits Actuary of SE, together with the Chief Actuary of Rothesay have each written their own reports on the effects of the transfer on the companies and on policyholders.  You can access their full reports and other useful information in the Important Documents box below.

You can see details of the Rothesay transfer in the Scheme document (PDF)(Opens new window).

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

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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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