Equitable Life has completed the sale of its subsidiary University Life to Reliance Mutual Insurance.
The deal, which was announced in December, followed closely on the heels of Equitable’s sale of £4.6bn non-profit annuities to Canada Life in May and effectively left the insurer to operate as a large with-profits fund.
It stated at the time it was “appropriate to sell the company to Reliance Mutual” as University Life’s 2,000 policyholders would benefit from the specialist experience of Reliance in managing small closed life funds, while Equitable would benefit by removing the costs associated with University Life.
Following the Reliance Mutual deal, Equitable confirmed the bulk of its remaining business is tied up in its with-profits fund, valued at just under £10bn, along with the remaining 10% of non-profit annuities which were not transferred to Canada Life.
However, in March this year Equitable Life confirmed an agreement to transfer £1.8bn of with-profits annuities to Prudential.
Charles Thomson, chief executive of Equitable Life, says: “This is another step forward in our strategy of finding the best future for our policyholders. The sale of University Life simplifies the business of Equitable Life and makes it easier to assess strategic options for our policyholders and, if attractive, to implement them.”
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