Phoenix is planning to transfer 450,000 savings policies from sister company Phoenix & London Assurance Limited to Phoenix Life.
The transfer, which is subject to High Court approval on February 2, 2011, is expected to take place on February 14. It will incorporate all of Palal’s policies, including with-profits, non-profit and annuities already in force.
Deloitte senior actuary David Murray has been appointed to prepare a report on the transfer for the High Court. In his report, Murray said the scheme would not materially adversely affect the benefit security or benefit expectations of Palal or Phoenix policyholders.
A Phoenix Life spokesperson says: “This is a positive step for the investors holding Palal policies and being able to have access to the increased financial protection of Phoenix Life is an added benefit for all policyholders concerned.”
Informed Choice managing director Martin Bamford says the transfer should have “minimal impact” on investors. He says: “If anything, you sometimes see slightly improved service standards, so it is probably quite a positive move.”