Prudential PLC: U.K. High Court Declines to Sanction Annuity Transfer
16 Agosto 2019 - 2:00PM
Dow Jones News
By Adria Calatayud
Prudential PLC (PRU.LN) said Friday that the High Court of
England and Wales has declined to sanction a proposed transfer of
annuities from one of its subsidiaries to Rothesay Life PLC.
The ruling won't affect M&GPrudential's demerger, Prudential
said.
The insurance-and-investment business said the current benefits,
terms and conditions, and service for the policyholders covered by
the proposed transfer are unaffected as a result of the
judgment.
The Prudential Assurance Company Ltd., a subsidiary of
M&GPrudential, in March 2018 entered into an agreement with
Rothesay Life to reinsure shareholder-backed annuity liabilities
worth 12.0 billion pounds ($14.51 billion) with the intention that
this would be followed by a transfer of the business.
This reinsurance arrangement remains in place and the High
Court's judgment has no effect on the current capital position of
PAC, Prudential said.
The timetable for the demerger of M&GPrudential from
Prudential hasn't been affected by the court decision and is still
expected to be completed in the fourth quarter of 2019, the company
said.
PAC and Rothesay Life have been granted leave to appeal the
judgment by the High Court, Prudential said.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
August 16, 2019 07:45 ET (11:45 GMT)
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