Court blocks £12bn annuity transfer from Prudential to Rothesay Life

Granted leave to appeal the judgement

James Phillips
clock • 2 min read

The High Court has blocked the £12bn transfer of Prudential's annuity book to Rothesay Life, citing the insurer's lack of "established reputation" and differing "capital management policies".

In a court judgment issued on Friday (16 August), Justice Snowden declined the request to approve a Part VII transfer, noting Rothesay Life was a "relatively new entrant" and "does not have the same capital management resources of the backing of a large group with the resources". While an independent expert had verified that policyholders would see no adverse effects and that the scheme would not "materially affect the interests of reasonable expectations of policyholders", Snowden said the transfer could result in a "material disadvantage". In his judgment, Snowden wrote: "[Rothesay ...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Industry

CEO of Tilney Smith & Williamson Chris Woodhouse

Tilney Smith & Williamson sees gross inflows of £4.5bn in nine months

AuM rises 9.2% to £56bn up to September

Pedro Goncalves
clock 01 November 2021 • 1 min read
Suspicious activity reports by staff at financial firms exceeded one million during 2019-20

Suspicious activity reports by staff at financial firms exceeded one million during 2019-20

FCA data

Georgie Lee
clock 01 November 2021 • 2 min read

Charles Stanley buys Leeds-based Middleton Croft

All managers will move to Charles Stanley

Anna Fedorova
clock 01 August 2019 • 1 min read