Rothesay Life Limited (Rothesay Life) and MetLife, Inc. (NYSE:MET)
(MetLife) today announced that Rothesay Life will acquire MetLife
Assurance Limited (MetLife Assurance), a subsidiary of MetLife. MetLife
Assurance is a leading specialist bulk annuity pension provider, with
approximately £3 billion in assets under management. The acquisition is
expected to be completed in the second quarter of 2014, subject to
regulatory approval and satisfaction of other closing conditions. The
terms of the agreement were not disclosed.
Since the start of 2013, Rothesay Life has concluded £1.8 billion of
transactions, including pensioner buy-ins with Philips (£484 million),
Cobham (£280 million) and Smith & Nephew (£190 million) and a buyout
with InterContinental Hotels (£440 million) with total business written
now covering in excess of 165,000 members. Macro-economic and
demographic factors are set to drive demand and Rothesay Life expects
there to be further long term expansion in pension insurance buyouts and
buy-ins.
Established in 2007, MetLife Assurance has been a well-known and
successful supplier of bulk annuities in the U.K. and Irish markets,
securing the benefits of more than 20,000 members. It maintains the
capital standards and prudent reserves required by the Prudential
Regulation Authority to safeguard all of its customer benefits and, as
such, benefit obligations to trustees and pension payments to individual
policyholders will not be affected by this sale.
The decision by MetLife to sell MetLife Assurance does not involve
MetLife’s other businesses in the U.K., in particular the U.K. wealth
management and employee benefits business (MetLife Europe Limited), or
MetLife’s U.S. pension risk transfer business.
MetLife’s financial adviser for this transaction is Citigroup Capital
Markets Inc. and the company’s legal adviser is CMS Cameron McKenna LLP.
Rothesay Life’s financial adviser for this transaction is Goldman Sachs
and the company’s legal adviser is Linklaters LLP.
Addy Loudiadis, CEO of Rothesay Life, said:
"The acquisition of MetLife Assurance makes Rothesay Life the U.K.’s
largest dedicated provider of defined benefit de-risking solutions, with
over £10 billion of assets under management.
She continued: “The U.K. pension de-risking market has
experienced recent strong growth, with transaction levels approaching
the 2008 high. The acquisition of the £3 billion MetLife Assurance
annuity portfolio follows the acquisition of Paternoster in 2011 and
builds on Rothesay’s strong organic growth track record, taking
transactions since the start of 2013 to £4.8 billion. The deal comes
just after the successful diversification of the investor base, with
Blackstone, GIC and MassMutual joining Goldman Sachs as shareholders.
Rothesay Life has an exciting future capitalising on a reputation for
providing innovative pension solutions to U.K. pension funds and their
sponsors. MetLife Assurance’s customers can be assured their
pensions will continue to be paid by a secure and well-capitalised
insurer.”
ENDS
About Rothesay Life Limited
Rothesay Life Limited was established in 2007 and has become one of the
leading providers of regulated insurance solutions in the U.K. market
for pensions de-risking, with over £12 billion of insurance contracts.
In 2012, Rothesay Life Limited wrote over £1 billion of new bulk annuity
business and has written nearly £1.8 billion since the start of 2013
with total business written now covering in excess of 165,000 members.
This strong growth has been achieved through the steady accumulation of
pension scheme clients and the acquisition of Paternoster in 2011.
Existing Rothesay Life Limited clients include the pension schemes and
members associated with such names as RSA, British Airways, P&O, Rank,
Uniq, General Motors, the MNOPF (Merchant Navy Officers Pension Fund),
InterContinental Hotels and Philips.
Rothesay Life Limited is a secure long term provider of pensions,
focused on:
-
a flexible and committed approach to execution;
-
ongoing risk management to maintain balance sheet strength; and
-
robust operational processes.
Rothesay Life is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential
Regulation Authority.
www.rothesaylife.co.uk
About MetLife Assurance Limited
MetLife Assurance Limited in the U.K. is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct Authority
and the Prudential Regulation Authority. MetLife Assurance Limited
operates under the MetLife brand name. In the U.K. and Ireland, MetLife
Assurance works with companies, their advisers, and pension scheme
trustees to provide innovative pension risk transfer solutions. Services
are delivered from the MetLife Assurance registered office in London.
MetLife Assurance Limited has £3 billion in assets under management, and
has secured the pension benefits of more than 20,000 scheme members.
www.metlife.co.uk/metlifeassurance
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates
(“MetLife”), is a leading global provider of insurance, annuities and
employee benefit programs, serving 90 million customers. MetLife holds
leading market positions in the United States, Japan, Latin America,
Asia, Europe and the Middle East. For more information, visit www.metlife.com
Forward-Looking Statements
This news release may contain or incorporate by reference information
that includes or is based upon forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future
events. These statements can be identified by the fact that they do not
relate strictly to historical or current facts. They use words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning in connection
with a discussion of future operating or financial performance. In
particular, these include statements relating to future actions,
prospective services or products, future performance or results of
current and anticipated services or products, sales efforts, expenses,
the outcome of contingencies such as legal proceedings, trends in
operations and financial results. Any or all forward-looking statements
may turn out to be wrong. They can be affected by inaccurate assumptions
or by known or unknown risks and uncertainties. Many such factors will
be important in determining the actual future results of MetLife, Inc.,
its subsidiaries and affiliates. These statements are based on current
expectations and the current economic environment. They involve a number
of risks and uncertainties that are difficult to predict. These
statements are not guarantees of future performance. Actual results
could differ materially from those expressed or implied in the
forward-looking statements. Risks, uncertainties, and other factors that
might cause such differences include the risks, uncertainties and other
factors identified in MetLife, Inc.’s filings with the U.S. Securities
and Exchange Commission (the “SEC”). These factors include: (1)
difficult conditions in the global capital markets; (2) increased
volatility and disruption of the capital and credit markets, which may
affect our ability to meet liquidity needs and access capital, including
through our credit facilities, generate fee income and market-related
revenue and finance statutory reserve requirements and may require us to
pledge collateral or make payments related to declines in value of
specified assets, including assets supporting risks ceded to certain of
our captive reinsurers or hedging arrangements associated with those
risks; (3) exposure to financial and capital market risks, including as
a result of the disruption in Europe and possible withdrawal of one or
more countries from the Euro zone; (4) impact of comprehensive financial
services regulation reform on us, as a potential non-bank systemically
important financial institution, or otherwise; (5) numerous rulemaking
initiatives required or permitted by the Dodd-Frank Wall Street Reform
and Consumer Protection Act which may impact how we conduct our
business, including those compelling the liquidation of certain
financial institutions; (6) regulatory, legislative or tax changes
relating to our insurance, international, or other operations that may
affect the cost of, or demand for, our products or services, or increase
the cost or administrative burdens of providing benefits to employees;
(7) adverse results or other consequences from litigation, arbitration
or regulatory investigations; (8) potential liquidity and other risks
resulting from our participation in a securities lending program and
other transactions; (9) investment losses and defaults, and changes to
investment valuations; (10) changes in assumptions related to investment
valuations, deferred policy acquisition costs, deferred sales
inducements, value of business acquired or goodwill; (11) impairments of
goodwill and realized losses or market value impairments to illiquid
assets; (12) defaults on our mortgage loans; (13) the defaults or
deteriorating credit of other financial institutions that could
adversely affect us; (14) economic, political, legal, currency and other
risks relating to our international operations, including with respect
to fluctuations of exchange rates; (15) downgrades in our claims paying
ability, financial strength or credit ratings; (16) a deterioration in
the experience of the “closed block” established in connection with the
reorganization of Metropolitan Life Insurance Company; (17) availability
and effectiveness of reinsurance or indemnification arrangements, as
well as any default or failure of counterparties to perform; (18)
differences between actual claims experience and underwriting and
reserving assumptions; (19) ineffectiveness of risk management policies
and procedures; (20) catastrophe losses; (21) increasing cost and
limited market capacity for statutory life insurance reserve financings;
(22) heightened competition, including with respect to pricing, entry of
new competitors, consolidation of distributors, the development of new
products by new and existing competitors, and for personnel; (23)
exposure to losses related to variable annuity guarantee benefits,
including from significant and sustained downturns or extreme volatility
in equity markets, reduced interest rates, unanticipated policyholder
behavior, mortality or longevity, and the adjustment for nonperformance
risk; (24) our ability to address difficulties, unforeseen liabilities,
asset impairments, or rating agency actions arising from business
acquisitions, including our acquisition of American Life Insurance
Company and Delaware American Life Insurance Company, integrating and
managing the growth of such acquired businesses, or arising from
dispositions of businesses or legal entity reorganizations; (25) the
dilutive impact on our stockholders resulting from the settlement of our
outstanding common equity units; (26) regulatory and other restrictions
affecting MetLife, Inc.’s ability to pay dividends and repurchase common
stock; (27) MetLife, Inc.’s primary reliance, as a holding company, on
dividends from its subsidiaries to meet debt payment obligations and the
applicable regulatory restrictions on the ability of the subsidiaries to
pay such dividends; (28) the possibility that MetLife, Inc.’s Board of
Directors may control the outcome of stockholder votes through the
voting provisions of the MetLife Policyholder Trust; (29) changes in
accounting standards, practices and/or policies; (30) increased expenses
relating to pension and postretirement benefit plans, as well as health
care and other employee benefits; (31) inability to protect our
intellectual property rights or claims of infringement of the
intellectual property rights of others; (32) inability to attract and
retain sales representatives; (33) provisions of laws and our
incorporation documents may delay, deter or prevent takeovers and
corporate combinations involving MetLife; (34) the effects of business
disruption or economic contraction due to disasters such as terrorist
attacks, cyberattacks, other hostilities, or natural catastrophes,
including any related impact on the value of our investment portfolio,
our disaster recovery systems, cyber- or other information security
systems and management continuity planning; (35) the effectiveness of
our programs and practices in avoiding giving our associates incentives
to take excessive risks; and (36) other risks and uncertainties
described from time to time in MetLife, Inc.’s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or
update any forward-looking statement if MetLife, Inc. later becomes
aware that such statement is not likely to be achieved. Please consult
any further disclosures MetLife, Inc. makes on related subjects in
reports to the SEC.
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