The investment by MassMutual, a leading U.S. mutual life insurer, reflects the continuing strength and successful growth of Rothesay Life.
Rothesay Life is pleased to announce a £100m investment in perpetual subordinated debt by Massachusetts Mutual Life Insurance Company (MassMutual).
Rothesay Life wrote over £1bn of new bulk annuity business in 2012, including contracts with the Merchant Navy Officers Pension Fund (“MNOPF”) and General Motors (GM) UK Retirees Pension Plan. Rothesay Life has now passed the milestone of more than £10bn of business written, more than any other dedicated bulk annuity insurer.
Rothesay Life has a strong continued appetite to offer large, bespoke solutions as well as for mid-market transactions (£100m to £500m). It has a healthy pipeline of new transaction opportunities, which are expected to produce a robust flow of new business in 2013.
The investment by MassMutual replaces existing debt at Rothesay Life. Goldman Sachs remains Rothesay Life’s sole shareholder.
Addy Loudiadis, CEO, Rothesay Life, said: “We are delighted that MassMutual, a major US financial institution, is making a £100m debt investment in Rothesay Life. This investment represents a significant vote of confidence in Rothesay Life’s business, in particular, on our rigorous risk management.”
M. Timothy Corbett, Executive Vice President and Chief Investment Officer at MassMutual, said: “As part of MassMutual’s investment strategy, we seek to generate competitive long-term results for our policyowners. Demand for risk management from UK defined benefit pension schemes offers significant growth opportunities, and our investment in Rothesay Life supports our view that the company is well-positioned to capitalise on this
opportunity.”
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