MetLife UK has sold its bulk annuity business, MetLife Assurance, to insurer Rothesay Life for an undisclosed sum.
MetLife confirmed it was planning to sell its bulk annuity arm in February last year. At the time, Sky News reported the business was valued “significantly below” £1bn.
The acquisition, which will see £3bn in assets under management transferred to Rothesay, is expected to be completed in the second quarter of 2014, subject to regulatory approval.
Rothesay Life chief executive Addy Loudiadis says: “The UK pension de-risking market has experienced recent strong growth, with transaction levels approaching the 2008 high.
“The acquisition of the £3bn 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 £4.8bn.”
MetLife’s financial adviser for the transaction is Citigroup Capital Markets and the company’s legal adviser is CMS Cameron McKenna.
Rothesay Life’s financial adviser is Goldman Sachs, while its legal adviser is Linklaters.