| Company type | Private |
|---|---|
| Industry | Insurance |
| Founded | 2007 |
| Founder | Addy Loudiadis |
| Headquarters | London , United Kingdom |
Key people |
|
| Products |
|
| Total assets | £70.8 billion (AUM, 2024) [1] |
| Owners | [2] |
| Website | www |
Rothesay (formerly Rothesay Life) is a United Kingdom pension insurer that writes bulk annuities for defined benefit pension schemes and acquires in-force annuity portfolios. It was founded in 2007 as a subsidiary of Goldman Sachs and is now owned by the Singapore sovereign wealth fund GIC and the US insurer MassMutual.
As at 31 December 2024 the group reported £70.7 billion of assets under management and a group Solvency Capital Requirement coverage ratio of 261 percent.
Rothesay was founded in 2007 as a subsidiary of Goldman Sachs. [3]
Following a competitive process in late 2010, Rothesay agreed to acquire specialist bulk annuity insurer Paternoster and completed the deal in January 2011, adding a large in-force annuity book. [4] [5]
Goldman Sachs agreed in 2013 to sell a majority stake in Rothesay to funds managed by Blackstone and GIC, with MassMutual acquiring a minority holding. Completion followed in December 2013. Goldman exited in 2017, then Blackstone sold its interest in 2020 which left GIC and MassMutual as shareholders. [6] [7] [8] [2]
After EU merger clearance in April 2014, Rothesay completed the acquisition of MetLife Assurance Limited and integrated the portfolio over the following year. [9] [10] Part VII FSMA transfers later moved reinsured annuity books into direct ownership, including portfolios from Zurich and Aegon that completed in 2017. [11] [12] [13]
A proposed transfer of about £12 billion of Prudential UK annuities was initially refused by the High Court in 2019. The Court of Appeal set that decision aside in 2020 and the High Court sanctioned the transfer on 24 November 2021 with an effective date of 15 December 2021. [14] [15] [16]
In March 2024 Rothesay agreed to acquire Scottish Widows’ in-force bulk annuity portfolio. The High Court approved the transfer on 14 May 2025 and completion took effect on 11 June 2025. [17] [18] [19]
Rothesay focuses on pension risk transfer in the United Kingdom. Its activities include bulk purchase annuities written as buy-ins and buy-outs, the acquisition of in-force annuity portfolios from insurers, and occasional acquisitions of insurance companies. The group reinsures a high proportion of longevity risk and invests mainly in government securities, corporate credit, infrastructure lending and secured lending. [20]
Independent market reporting described strong demand for UK bulk annuities in 2024 and 2025, with record annual volumes in 2024. Trade press ranked Rothesay among the largest writers by new premium in 2024, supported by large transactions with NatWest Group and other schemes. [21] [22] [23]
Rothesay Life plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the PRA. [24] [25]
UK regulatory materials set expectations for annuity writers on areas such as the Solvency UK matching adjustment, funded reinsurance and risk management. The PRA has updated its supervisory statements and consulted on reforms in 2024 and 2025 that are relevant to firms active in the bulk annuity market. [26] [27] [28]
As at 31 December 2024 the group reported assets under management of £70.7 billion and a group Solvency Capital Requirement coverage ratio of 261 percent. [29] For the six months to 30 June 2025 Rothesay Life plc reported assets under management of £69.5 billion, adjusted operating profit of £347 million and an SCR coverage ratio of 266 percent. [20]
Independent commentary linked stronger solvency ratios across the sector to higher gilt yields which reduced the present value of annuity liabilities. The Bank of England also noted measures to support market functioning for insurers and pension schemes during periods of gilt market stress. [30] [31]
Rothesay Limited is the group holding company and Rothesay Life plc is the principal regulated insurance subsidiary. The group is owned by GIC and Massachusetts Mutual Life Insurance Company. [1] [2]
As of 2025 Rothesay Life plc is rated A+ for Insurer Financial Strength by Fitch and A2 for Insurance Financial Strength by Moody’s. [32] [33]
The company has completed a number of large transactions in the UK bulk annuity market. Industry data reported record annual volumes in 2024 and identified Rothesay among the largest writers of new premiums that year. [22] [21]
Rothesay has also undertaken smaller portfolio actions, including the disposal of an Irish annuity portfolio to Monument Re that was expected to transfer to Laguna Life following reinsurance and court approval processes. [42]