Equitable Life has completed the sale of its subsidiary University Life Assurance Society to Reliance Mutual.
Equitable says the sale, which was announced on December 20, 2006, will benefit its policyholders by removing the costs associated with University Life.
University Life will become a wholly-owned subsidiary of Reliance Mutual, which specialises in the administration of small closed life funds.
In March, Equitable Life announced an agreement to transfer 1.8bn of with-profits annuities to Prudential after completing the transfer of 4.6bn of its non-profit pension annuities to Canada Life in February 2007.
Chief executive Charles Thomson says: “This is another step forward in our strategy of finding the best future for our policyholders. The sale of University Life simplifies the business of Equitable Life and makes it easier to assess strategic options for our policyholders and, if attractive, to implement them.”
Reliance Mutual chief executive Mark Goodale says: “We have an impressive track record of successfully integrating closed books of business into our systems and with the help of Equitable Life and its third-party administrators, HBOS, we have again had another seamless transition.”