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Singaporean sovereign investor buys stake in Rothesay Life

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Singaporean sovereign wealth fund GIC is to acquire a 28.5% stake in UK pension insurer Rothesay Life, months after Goldman Sachs confirmed it was looking to sell part of the wholly owned subsidiary.

In addition to GIC, funds managed by Blackstone will also buy 28.5% of shares, and Massachusetts Mutual Life Insurance will acquire 7%, leaving Goldman as the largest shareholder, with a 36% stake.

Chief executive Addy Loudiadis said she was delighted three “substantial” investors had been attracted to the company.

“With over £12bn (€14.1bn) of accumulated liabilities, we have now successfully diversified our shareholder base as the next step in our journey,” she said.

Tay Lim Hock, president of GIC Special Investments, expressed confidence in the current Rothesay management team.

“We also believe in the long-term potential of the expanding market for pension insurance buyouts and buy-ins,” he added.

MassMutual CIO M Timothy Corbett said the investment was compatible with its search for long-term returns.

“Demand for risk management from UK defined benefit pension schemes offers significant growth opportunities, and our ongoing investment in Rothesay Life supports our view the company is well-positioned to capitalise on this opportunity,” he said.

The parties did not disclose a price for the transaction, which is subject to approval from regulators, including the UK’s Prudential Regulation Authority.

Rothesay has written almost £1.4bn in business this year, agreeing buy-ins with Philips and aerospace firm Cobham, as well as a buyout with the UK branch of Intercontinental Hotels.

The firm, established in 2007, expanded its hold on the pension insurance market in 2010 by acquiring rival Paternoster.



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