Hogan Lovells Advises Equitable Life Assurance Society on Sale of £875M Annuity Business
11 March 2015
London, 10 March 2015 – Hogan Lovells has advised The Equitable Life Assurance Society on the sale of an annuity business with liabilities of around £875 million to Canada Life Limited. The transaction was announced on 3 March 2015.
The transaction has been structured as an initial reinsurance, which will be followed by a transfer of the annuity policies under Part VII of the Financial Services and Markets Act 2000. The business comprises approximately 31,000 policies, representing the bulk of Equitable Life's remaining annuity business.
The transaction will remove a significant element of longer-dated risk from Equitable Life's with-profits fund, increasing its ability to deliver improved returns to with-profits policyholders over the course of the run-off of the fund.
The team advising Equitable Life was led by London corporate insurance partners Charles Rix and Steven McEwan, with assistance from a cross-practice London team.
Commenting on the transaction, Steven McEwan said:
"We are very pleased to have been able to assist with a transaction that represents an important step in Equitable Life's strategy of seeking to release capital for the benefit of its with-profits policyholders."