UK - Synesis Life, one of several new entrants into the pension annuity buyout market, says it is likely to get approval from the Financial Services Authority.

Synesis was set up earlier this year by former Prudential executive Isabel Hudson and looks set to compete with other newcomers such as Paternoster, headed up by her former boss Mark Wood.

Synesis said the UK regulator “is minded to provide the Company with the necessary authorisations to act as a provider of wholesale solutions to the insurance and pension annuity liabilities transfer marketplace”.

Hudson said the move was “another significant step and we look forward to being formally authorised when we have completed the necessary formalities which we anticipate completing at the time of our first transaction”.

She added: “We have had an extremely positive response from the marketplace since we announced our intention to launch Synesis Life in May.”

Synesis intends to establish itself as a leading acquirer of medium to large annuity portfolios from UK insurance companies and pension funds.

Initially, it will target insurance annuities – which it says “offers the most immediate opportunities for growth”.

“Leveraging its expertise and understanding of this sector, Synesis will optimise the efficient management of its portfolios,” a statement said.

Synesis and its investors, JP Morgan, Royal Bank of Scotland and Warburg Pincus, intend to accept between £7-10bn worth of liabilities over the medium term.

Topics