Zurich UK Life is to transfer its legacy portfolio of £1.2bn of annuities to specialist insurer Rothesay Life for an undisclosed fee.
Under part seven transfer rules the transfer, of around 28,000 policies, is subject to a review process by regulators and courts before it can complete.
Zurich has not actively promoted annuity sales since 2005.
It sold the bulk of its book, £3.7bn of assets and £3.9bn of liabilities, to Windsor Life, a subsidiary of reinsurer Swiss Re, in 2007.
This deal represents almost 100 per cent of the legacy annuities on Zurich’s book at the end of 2014.
Zurich UK Life chief executive Gary Shaughnessy says: “This transaction protects our customers, reduces our risk exposure and is aligned with our strategy of focusing our resources on pursuing sustained growth.”
Rothesay Life chief executive Addy Loudiadis says: “The deal continues an increasing trend of legacy annuity books transferring to specialists such as ourselves.”