(February 18, 2014) — Rothesay Life, the pension fund insurer launched by Goldman Sachs in 2007, has bought out competitor MetLife’s UK bulk annuity business with £3 billion in assets.
The companies announced today that MetLife Assurance would be taken on board by Rothesay, which itself was subject to a partial take-over last year by a consortium of Blackstone, GIC, and Mass Mutual. Goldman Sachs retained a stake worth a third of the business.
Where Rothesay has transacted some of the largest deals in the last two years—some £1.8 billion last year alone—Metlife has done little business.
The UK’s buyout market has been strengthening in this time, however, with bumper volumes of pension assets being insured by third parties.
“The UK pension de-risking market has experienced recent strong growth, with transaction levels approaching the 2008 high,” said Addy Loudiadis, CEO of Rothesay Life. “The acquisition of MetLife Assurance makes Rothesay Life the UK’s largest dedicated provider of defined benefit de-risking solutions, with over £10 billion of assets under management.”
Rothesay Life bought competitor Paternoster in 2011, a company that had been one of the market leaders.
The move leaves just a handful of major players in the UK market, including Rothesay Life, Pension Corporation, Prudential, and Legal & General.
Related content: Risk Transfer: Boom or Bust in 2013? & Are Mega-Buyout Deals on the Cards?