Sale provides reassurance to trustees

Reacting to the news today that Rothesay Life is to acquire MetLife's £3bn bulk annuity business, Mark Paxton, bulk annuity consultant, says:

“This is not surprising as rumours about MetLife Assurance’s future have been in the news for the past year, and their bulk annuity business volumes have fallen considerably over the past year.  Rothesay Life recently diversified its investor base with new shareholders and today’s news demonstrates their enthusiasm for the bulk annuity market.

The transaction also demonstrates that if insurers do choose to leave the market, there is a good chance that there will be someone willing to take on the liabilities.  This should provide reassurance to trustees and sponsors looking to complete buyouts or buy-ins.”