High Court clears £ 12 billion pension transfer from Prudential to Rothesay


The High Court has cleared the transfer of a £ 12 billion bond portfolio from The Prudential Assurance Company, a subsidiary of M&G, to Rothesay Life.

The court initially blocked the transfer, which involved nearly 400,000 policyholders, in August 2019.

Rothesay then appealed the decision to the High Court, with the appellate court overturning the decision in December 2020, calling the original decision “wrong” on a number of issues.

The successful appeal resulted in the High Court reviewing the case and subsequently ruling that the transfer can now proceed.

Commenting on the announcement, a Rothesay spokesperson said: “Rothesay Life Plc welcomes today’s decision by the High Court of England and Wales regarding the proposed transfer of a bond portfolio from The Prudential Assurance Company Limited, a subsidiary of M&G Plc, to Rothesay.

“The court’s decision brought important clarity to our entire industry. As the UK’s largest pension specialist committed to providing long-term security and excellent customer service, we are excited to welcome our new policyholders to Rothesay. “

Huw Evans, General Manager of the Association of British Insurers (ABI) added: “Important news today that the High Court has cleared the transfer of a bond portfolio from The Prudential Assurance Company Limited to Rothesay.

“These transfers produce good results for customers, as companies like Rothesay specialize in looking after retirees and guaranteeing a lifelong income.

“This follows the decision of the Court of Appeal last year that brought legal clarity and certainty to the transfer of business process under Part VII of the Financial Services and Markets Act 2000.

“The ABI participated in the call to explain the wider implications for customers and businesses if a number of speculative judgments could override the view of independent experts and regulators that a transfer can be made without harm to consumers.”

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