If you’re a with-profits policyholder

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 the decision to leave the annuity market entirely allows us to focus on the continued growth of our pre-retirement solutions.

As a result of this review Scottish Equitable plc has agreed to sell and transfer a significant part of its annuity business to Rothesay Life plc (Rothesay). Part of the business transferring to Rothesay is currently written in the Scottish Equitable plc With-Profits Sub-Fund.

As part of the process, we have to apply to the High Court to formally transfer the annuity business. The application to Court was made on 17 February 2017. 

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

If you have more than one with-profits policy, or an annuity with us, you’ll receive more than one letter. Please read all letters carefully as not all policies are impacted in the same way. You should also make any other person with an interest in your policy aware of the proposed transfer.

There are no changes to your policy – and you don’t have to do anything. 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, and the fund’s financial strength will be improved.

We’ll be making changes however, to the Principles and Practices of Financial Management(Opens new window)(Opens new window)(Opens new window)(Opens new window) (PPFM) which governs the With-Profits Sub-Fund.  Although there will be no material changes to the way the Scottish Equitable With-Profits Sub-Fund is managed or governed.

We’ll update the PPFM(Opens new window)(Opens new window)(Opens new window)(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 With-Profits Sub-Fund as agreed. SEPT has reviewed the proposed transfer and is supportive.

The Chief Actuary and the With-Profits Actuary of Scottish Equitable plc, together with the Chief Actuary of Rothesay have each written their own reports on the effects of the proposed 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 proposed transfer in the Scheme document  

If you’re satisfied with the proposed transfer you don’t need to do anything else. If the proposed transfer is approved, we’ll publish confirmation here after the transfer date.  

If you feel you’d be disadvantaged by the proposed transfer, you have the right to object and to present your views to Court. You can also choose to be represented at Court if you prefer.  If you wish to object, you can contact us using any of the contact details below.

It would help the process if you could explain the reasons for your objection when you contact us. We’ll acknowledge and reply to all objections we receive in writing.   We’ll also submit copies of all policyholder objections to the Court which will consider them and the Scheme on 12 June 2017. 

Please make sure you understand what this means for you – there’s more information if you need it – see our Important documents in the box below.

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)

Please note that Aegon take no responsibility for the content of external sites.