Lloyds Sells £6 Billion of Bulk Annuities to Rothesay
- Portfolio includes pension benefits for about 42,000 people
- Bulk annuities deals have become more attractive recently
This article is for subscribers only.
Lloyds Banking Group Plc will offload a £6 billion ($7.67 billion) portfolio of bulk annuities from its Scottish Widows subsidiary to pensions insurance specialist Rothesay Life Plc.
The portfolio includes benefits for about 42,000 people, the companies said in a statement, which noted the deal will have an immaterial financial impact for Lloyds. The deal will initially be structured as a reinsurance agreement for the in-force bulk annuity portfolio and, for now, the policies will continue to be serviced by Scottish Widows.