Prudential PLC: U.K. High Court Declines to Sanction Annuity Transfer

   By Adria Calatayud 
 

Prudential PLC (PRU.LN) said Friday that the High Court of England and Wales has declined to sanction a proposed transfer of annuities from one of its subsidiaries to Rothesay Life PLC.

The ruling won't affect M&GPrudential's demerger, Prudential said.

The insurance-and-investment business said the current benefits, terms and conditions, and service for the policyholders covered by the proposed transfer are unaffected as a result of the judgment.

The Prudential Assurance Company Ltd., a subsidiary of M&GPrudential, in March 2018 entered into an agreement with Rothesay Life to reinsure shareholder-backed annuity liabilities worth 12.0 billion pounds ($14.51 billion) with the intention that this would be followed by a transfer of the business.

This reinsurance arrangement remains in place and the High Court's judgment has no effect on the current capital position of PAC, Prudential said.

The timetable for the demerger of M&GPrudential from Prudential hasn't been affected by the court decision and is still expected to be completed in the fourth quarter of 2019, the company said.

PAC and Rothesay Life have been granted leave to appeal the judgment by the High Court, Prudential said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

August 16, 2019 07:45 ET (11:45 GMT)

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