Equitable Life has appointed BlackRock to provide investment and risk management services for its 400,000 policyholders and group scheme members.
BlackRock's objective will be to maximise returns on £5.7bn of assets while satisfying Equitable Life's regulatory solvency ratios. Its appointment will become effective in October 2010.
Equitable Life says the deal will help recreate value for policyholders following the new third party administration contract with HCL and the 5½% policy value increase earlier in 2010.
BlackRock has £2.2trn AUM and an established track record of co-ordinating assets for insurance companies.
Chris Wiscarson, Equitable Life's chief executive says: "Maximising returns on policyholder investments is one of the Society's three key strategic priorities. Today, we have taken another important step forward by appointing BlackRock, a great new partner by any standard."
Rich Kushel, BlackRock's vice chairman, adds: "We are proud to work in partnership with Equitable Life. We believe that our experience in sterling fixed income, in asset management for insurance companies, and in risk management will significantly support Equitable Life's strategy for policyholders."
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