This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Rothesay Life Limited To Acquire MetLife’s UK Bulk Annuity Portfolio

Stocks in this article: MET

Rothesay Life Limited (Rothesay Life) and MetLife, Inc. (NYSE:MET) (MetLife) today announced that Rothesay Life will acquire MetLife Assurance Limited (MetLife Assurance), a subsidiary of MetLife. MetLife Assurance is a leading specialist bulk annuity pension provider, with approximately £3 billion in assets under management. The acquisition is expected to be completed in the second quarter of 2014, subject to regulatory approval and satisfaction of other closing conditions. The terms of the agreement were not disclosed.

Since the start of 2013, Rothesay Life has concluded £1.8 billion of transactions, including pensioner buy-ins with Philips (£484 million), Cobham (£280 million) and Smith & Nephew (£190 million) and a buyout with InterContinental Hotels (£440 million) with total business written now covering in excess of 165,000 members. Macro-economic and demographic factors are set to drive demand and Rothesay Life expects there to be further long term expansion in pension insurance buyouts and buy-ins.

Established in 2007, MetLife Assurance has been a well-known and successful supplier of bulk annuities in the U.K. and Irish markets, securing the benefits of more than 20,000 members. It maintains the capital standards and prudent reserves required by the Prudential Regulation Authority to safeguard all of its customer benefits and, as such, benefit obligations to trustees and pension payments to individual policyholders will not be affected by this sale.

The decision by MetLife to sell MetLife Assurance does not involve MetLife’s other businesses in the U.K., in particular the U.K. wealth management and employee benefits business (MetLife Europe Limited), or MetLife’s U.S. pension risk transfer business.

MetLife’s financial adviser for this transaction is Citigroup Capital Markets Inc. and the company’s legal adviser is CMS Cameron McKenna LLP. Rothesay Life’s financial adviser for this transaction is Goldman Sachs and the company’s legal adviser is Linklaters LLP.

Addy Loudiadis, CEO of Rothesay Life, said:

"The acquisition of MetLife Assurance makes Rothesay Life the U.K.’s largest dedicated provider of defined benefit de-risking solutions, with over £10 billion of assets under management.

She continued: “The U.K. pension de-risking market has experienced recent strong growth, with transaction levels approaching the 2008 high. The acquisition of the £3 billion MetLife Assurance annuity portfolio follows the acquisition of Paternoster in 2011 and builds on Rothesay’s strong organic growth track record, taking transactions since the start of 2013 to £4.8 billion. The deal comes just after the successful diversification of the investor base, with Blackstone, GIC and MassMutual joining Goldman Sachs as shareholders.

Rothesay Life has an exciting future capitalising on a reputation for providing innovative pension solutions to U.K. pension funds and their sponsors. MetLife Assurance’s customers can be assured their pensions will continue to be paid by a secure and well-capitalised insurer.”


About Rothesay Life Limited

Rothesay Life Limited was established in 2007 and has become one of the leading providers of regulated insurance solutions in the U.K. market for pensions de-risking, with over £12 billion of insurance contracts. In 2012, Rothesay Life Limited wrote over £1 billion of new bulk annuity business and has written nearly £1.8 billion since the start of 2013 with total business written now covering in excess of 165,000 members. This strong growth has been achieved through the steady accumulation of pension scheme clients and the acquisition of Paternoster in 2011.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,639.59 +282.72 1.63%
S&P 500 2,047.38 +34.49 1.71%
NASDAQ 4,723.8130 +79.5010 1.71%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs