Prudential PLC High Court judgment on proposed annuity transfer (3530J)
16 Agosto 2019 - 1:09PM
UK Regulatory
TIDMPRU
RNS Number : 3530J
Prudential PLC
16 August 2019
16 August 2019
High Court judgment on proposed transfer of annuity business
-- No impact on demerger of M&GPrudential from Prudential plc, expected Q4 2019
-- Policyholder benefits and administration unaffected
The High Court of England and Wales ("the High Court") has
declined to sanction the transfer of a portfolio of annuities from
The Prudential Assurance Company Limited ("PAC"), a subsidiary of
M&GPrudential, to Rothesay Life plc ("Rothesay Life").
As a result of this judgment, the current benefits, terms and
conditions, and service for the policyholders covered by the
proposed transfer are unaffected. We will be writing to relevant
policyholders shortly.
In March 2018, PAC entered into an agreement with Rothesay Life
to reinsure GBP12.0 billion of shareholder-backed annuity
liabilities with the intention that this would be followed by a
transfer of the business pursuant to Part VII of the Financial
Services and Markets Act 2000.
This reinsurance arrangement remains in place and the High
Court's judgment has no effect on the current capital position of
PAC, which as at 30 June 2019 had an estimated Solvency II surplus
of GBP3.7 billion.
The High Court judgment also has no impact on the timetable for
the demerger of M&GPrudential from Prudential plc, which is
expected to complete in the fourth quarter of 2019.
We are disappointed by the High Court's decision. The
Independent Expert, who was appointed to report to the High Court,
concluded the transfer would have no material adverse effect on the
security of benefits or the reasonable benefit expectations of our
policyholders. PAC and Rothesay Life have been granted leave to
appeal the judgment by the High Court.
Media Investors/Analysts
M&GPrudential M&GPrudential
Richard Miles +44 (0)7833 481923 Spencer Horgan +44 (0)20 3977 7888
Jonathan Miller +44 (0)20 3977 0165
Prudential plc Prudential plc
Jonathan Oliver +44 (0)20 3977 9500 Patrick Bowes +44 (0)20 3977 9702
Tom Willetts +44 (0)20 3977 9760 William Elderkin +44 (0)20 3977 9215
Notes to Editors:
About M&GPrudential
M&GPrudential is a leading savings and investments business
which was formed in 2017 through the merger of Prudential plc's UK
and Europe savings and insurance operation and M&G, its
wholly-owned international investment manager. In March 2018,
Prudential plc announced its intention to demerge M&GPrudential
and give it a premium listing on the London Stock Exchange.
Prudential plc has announced that it expects the demerger will take
place in the fourth quarter of this year.
About Prudential plc
Prudential plc and its affiliated companies constitute one of
the world's leading financial services groups, serving 26 million
customers, with GBP717 billion of assets under management (as at 30
June 2019). Prudential plc is incorporated in England and Wales and
is listed on the stock exchanges in London, Hong Kong, Singapore
and New York. Prudential plc is not affiliated in any manner with
Prudential Financial, Inc., a company whose principal place of
business is in the United States of America.
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END
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