Standard Life reinsures £6.7bn of annuity liabilities

The move is expected to significantly reduce longevity exposure risk for shareholders. It will also make a one-off positive impact on embedded value operating profit of at least £100m, release cash from reserves in 2008 as well as reduce capital requirements. Sandy Crombie, group chief executive, says: “This transaction is believed to be the largest of its kind in the UK, and follows a full analysis of the strategic options for our annuity book and a competitive tender process.” Standard Life has a large back book of annuity business in the UK predating demutualisation in July 2006. ...