Rothesay (insurer)
{{Short description|UK pension insurer}}
{{Use British English|date=January 2025}}
{{Use dmy dates|date=January 2025}}
{{Infobox company
| name = Rothesay Ltd
| logo =
| type = Private
| industry = Insurance
| founded = {{start date and age |2007 }}
| founder = Addy Loudiadis
| key_people = {{Unbulleted list|Tom Pearce (CEO)|Graham Butcher (CFO)}}
| assets = {{Increase}}£68 billion
| assets_year = 2024
| owner = {{Unbulleted list|GIC (50%)|MassMutual (50%)}}
| website = {{URL|https://www.rothesay.com/}}
}}
Rothesay (formerly Rothesay Life) is a British pension insurance company based in the United Kingdom. A former subsidiary of Goldman Sachs, it is owned by the Singaporean sovereign wealth fund GIC and the American insurer MassMutual.{{Cite news |date=2017-08-09 |title=Goldman/Rothesay: senior moment |url=https://www.ft.com/content/bf8c6710-7d0d-11e7-ab01-a13271d1ee9c |access-date=2025-01-13 |work=Financial Times|url-access=subscription}}{{Cite news |last1=Ralph |first1=Oliver |last2=Wiggins |first2=Kaye |date=2020-09-30 |title=Blackstone sells Rothesay stake for £2.1bn |url=https://www.ft.com/content/b7ad54cb-4c51-4316-8a64-cfd2193b76ac |access-date=2025-01-13 |work=Financial Times|url-access=subscription}}
Rothesay principally insures the liabilities and risks of companies' defined benefit pension schemes, transactions known as "bulk purchase annuities" (BPA). It also acquires existing annuity portfolios.
{{As of |2024}}, the company had £68 billion ($83 billion) of assets under management, and insures the pensions of more than one million policyholders.{{Cite web |title=About us |url=https://www.rothesay.com/about-us/ |access-date=2025-01-13 |website=www.rothesay.com |language=en}}
History
Rothesay was founded by Addy Loudiadis in 2007, as a subsidiary of Goldman Sachs. Its first transaction was a buy-out of Rank Group's £700 million pension scheme, in 2008.{{Cite web |last=Stewart |first=Nyree |date=29 February 2008 |title=Rothesay Life completes first deal with Rank buyout (amended) |url=https://www.ipe.com/rothesay-life-completes-first-deal-with-rank-buyout-amended/27270.article |access-date=2025-01-13 |website=Investment & Pensions Europe |language=en}}
In 2019, Rothesay completed a buy-out of the GEC 1972 Pension Scheme, worth £4.7 billion, at the time the largest bulk annuity transaction ever completed.{{Cite news |last=Horton |first=Emily |title=Rothesay Life lands biggest ever UK pension scheme buyout |url=https://www.fnlondon.com/articles/rothesay-life-lands-biggest-ever-uk-pension-scheme-buyout-20190926 |archive-url=http://web.archive.org/web/20220214094729/https://www.fnlondon.com/articles/rothesay-life-lands-biggest-ever-uk-pension-scheme-buyout-20190926 |archive-date=2022-02-14 |access-date=2025-01-13 |website=fnlondon.com|language=en-GB}}
In 2019, Rothesay entered into an agreement with Prudential to take on its £12 billion annuity business. This transfer was blocked in the High Court.{{Cite news |last=Ralph |first=Oliver |date=2019-09-27 |title=Rothesay Life and Prudential appeal against £12bn transfer ruling |url=https://www.ft.com/content/934fe8a2-e12e-11e9-9743-db5a370481bc |access-date=2025-01-13 |work=Financial Times|url-access=subscription}} In 2021, on appeal, the decision was overturned, allowing the transaction to go ahead.{{Cite web |title=Court approves Prudential-Rothesay annuity transfer |url=https://www.grantthornton.co.uk/insights/court-approves-prudential-rothesay-annuity-transfer/ |access-date=2025-01-13 |website=Grant Thornton UK LLP |language=en}}
In 2024, Rothesay acquired Scottish Widows' £6 billion bulk annuity portfolio.{{Cite news |date=2024-03-13 |title=Lloyds Sells £6 Billion of Bulk Annuities to Rothesay |url=https://www.bloomberg.com/news/articles/2024-03-13/lloyds-sells-6-billion-of-scottish-widows-annuities-to-rothesay |access-date=2025-01-13 |work=Bloomberg.com |language=en}}